US 10 Year Treasury Yield Rises Sharply

2025-10-29 18:56 By Andre Joaquim 1 min. read

The yield on the 10-year US Treasury note jumped 10bps to 4.07% after Fed Chairman Powell downplayed the certainty of more rate cuts this year.

The Fed cut its rates by 25bps in its October meeting, as expected, and announced the end of its quantitative tightening.

Still, yields across the curve rose after Powell's reluctance to signal more cuts limited the view that the Fed will continue prioritizing labor market softness over high inflation.

Meanwhile, the Fed's balance sheet runoff will end at the start of December, rolling over the entirety of maturing Treasury securities and reinvesting its MBS assets into Treasury bills, aiming to temper recent stress in overnight funding markets.

Rate futures continued to expect three additional rate cuts by July of next year.

Earlier concerns of a slowing economy, the government shutdown, and bets of a steady balance sheet for the Fed drove the 10-year yield to drop to a one-year low of 3.95% on October 22nd.



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