10-year Treasury yield rises to fresh three-month high as U.S. rates continue their ascent

The yield on the 10-year U.S. Treasury continued its ascent on Monday after hitting a three-month high last week.

The 10-year Treasury yield rose 4 basis points to 4.274% to its highest level since July 2024. Meanwhile, the 2-year Treasury also added around 3 basis points to 4.131%.

Yields move inversely to prices. One basis point equals 0.01%.

The yield on the 10-year Treasury hit a three-month high on Wednesday, topping 4.25%, before dipping slightly to close out the week.

Monday is light on the data front, but traders are looking ahead this week to fresh jobs figures and consumer confidence data in the lead-up to the U.S. presidential election on Nov. 5.

Investors will also continue to digest a slew of central bank commentary following last week’s IMF meetings in Washington, D.C., with Federal Reserve policymakers now in a blackout period, which prevents commentary ahead of next week’s interest rate decision.

“If the economic data this week (especially the jobs report) is strong, then expectations for a November rate cut will fall, potentially hard, and that could inject some volatility into markets. Bottom line, Goldilocks data is important this week to keep rate cut expectations stable,” said Tom Essaye, founder of Sevens Report Research.