Treasury Yields Rise Sharply

2025-12-01 15:25 By Joana Taborda 1 min. read

The yield on the US 10-year Treasury note rose nearly 7bps to 4.08% on the first trading day of December, the highest in about two weeks, extending its rebound from Friday’s shortened session as a sell-off in Japanese debt rippled through global bond markets.

Japanese 10-year government bond yield hit the highest since 2006 amid expectations of a Bank of Japan rate hike later this month.

Higher rates in Japan could encourage domestic investors to keep more capital in local bonds rather than in higher-yielding assets abroad, including Treasuries.

In addition, a wave of new corporate bond issuance including from Merck & Co added further pressure to the bond market.

Meanwhile, market pricing shows the odds of another 25 bps cut to the federal funds rate at next week’s Fed meeting holding above 87%.

On the data front, the ISM Manufacturing PMI showed the US manufacturing sector contracted for a ninth straight month and at a faster pace in November.



News Stream
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