Treasury Yields Edge Up

2026-02-25 13:14 By Joana Taborda 1 min. read

The yield on the US 10-year Treasury note rose to 4.06% on Wednesday, rebounding from near three-month lows touched earlier in the week.

The earlier decline followed President Trump’s announcement of a blanket tariff on all imports, after the Supreme Court rejected his reciprocal tariff proposal.

However, the levy came into effect at a lower-than-expected 10% rate, easing safe-haven demand and pushing yields higher.

Meanwhile, money markets have scaled back expectations for Federal Reserve rate cuts.

The probability of a quarter-point reduction by June has fallen to 50%, the lowest level so far this year, while expectations of a third cut by year-end have nearly disappeared.

Investors will also monitor speeches from several Fed officials this week for further guidance on the policy outlook, as well as the US Treasury’s $70 billion auction of new five-year notes.

Tuesday’s two-year note sale was broadly in line with the when-issued level.



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