US Treasury Yields Climb to Almost 3-Month High

2025-12-08 15:04 By Joana Ferreira 1 min. read

The 10-year US Treasury yield rose toward 4.2%, its highest level since early September, as traders grew increasingly concerned about the Federal Reserve’s policy trajectory heading into 2026.

While a rate cut on Wednesday is already priced in, persistently high inflation has strengthened expectations that policymakers will move cautiously.

The 30-year yield also climbed to a three-month high of 4.8%.

Meanwhile, data released last week showing a modest improvement in US consumer confidence added to the uncertainty, contrasting with labor market reports that point to a marked slowdown in hiring.

Political developments also weigh on market sentiment.

While President Trump is expected to nominate a Fed Chair aligned with his dovish policy stance, market participants are wary that a new Chair could overextend rate cuts to accommodate political pressures.



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