U.S. Treasury Yields Surge Towards Multi-Decade Peaks

U.S. Treasury yields have made a sharp reversal, climbing back towards multi-decade highs and erasing the global bond market relief seen earlier this month.

The 10-year Treasury yield has risen to approximately 4.5%, up from a low of 4.2% in mid-February, driven by resilient economic data and fading expectations of aggressive Federal Reserve rate cuts.

The primary catalyst for the yield rebound is stronger-than-expected U.S. economic indicators, including robust job gains and sticky inflation readings.

Investors are scaling back bets on imminent Fed easing, with the CME FedWatch tool showing a 65% probability of no rate change at the March meeting, up from 50% a month ago.