US 10-Year Yield Approaches 5-Month High
2026-02-04 13:57
By
Andre Joaquim
1 min. read
The yield on the 10-year US Treasury note rose to the 4.28% mark, near the five-month high of 4.3% on January 20th after the US Treasury maintained its guidance on Treasuries issuance for the upcoming quarters.
The Treasury maintained a larger portion of borrowing in short term bills instead of longer-maturity bonds in an attempt to ease the debt burden of elevated interest rates.
The announcement also contrasted with some expectations that the Treasury could reduce the supply of duration to tame long-term yields in President Trump's effort to reign in mortgage rates.
Recently, Treasuries were also pressured by Trump's nomination of Kevin Warsh as the next Fed Chairman, who had previously advocated for a small balance sheet by the central bank.
Yields also increased on a strong economic activity reflected by ISM PMIs.
However, data from the ADP, which is under higher scrutiny due to the delay of the January BLS jobs report, maintained a slow hiring labor market.