- The US bond market has been free-fall to start 2025.
- Treasury yields hit their highest level since October 2023 on Friday after a strong jobs report.
- The move has been driven by dimmed rate-cut views and worries about inflationary Trump policies.
The US bond market is off to a tough start in 2025.
This has been reflected in spiking yields, which trade inverse to the price of bonds. On Friday, US Treasury yields surged to their highest level since October 2023, inching closer to a key threshold that has historically triggered a sell-off in stocks.
The yield on the US 10-year note has climbed 16 basis points just this week, following a 69-basis-point move in 2024. The 10-year yield has edged up consistently since the Fed began cutting rates in September, diverging from the federal funds rate as bond markets predict higher rates in the face of stubborn inflation.
Friday’s surge came after a blowout…
