Construction work is done around the Federal Reserve building on September 17, 2024 in Washington, DC.
Anna Moneymaker | Getty Images News | Getty Images
With its larger-than-normal cut last week, the Federal Reserve sent a clear message that interest rates are heading considerably lower in the future.
The Treasury market, though, hasn’t been paying attention.
Despite the Fed approving a half percentage point reduction in its baseline short-term borrowing rate, Treasury yields instead have been moving higher, particularly at the long end of the curve.
The 10-year note yield, considered the benchmark for government bond yields, has leaped about 17 basis points since the Federal Open Market Committee meeting of Sept. 17-18 — reversing what had been a sharp decline throughout September. One basis point equals 0.01%.
10-year yield rising
For now, bond market professionals are writing off a good portion of…
