US Treasury Yields Eases as Markets Await Fed's Next Move

The U.S. Treasury yields experienced a modest decline on Monday as investors took a breather following a pull-back in prices.

The policy-sensitive 2-year note yield eased to 4.716%, decreasing after recently touching its highest levels since July 2024.

The benchmark 10-year yield fell to 4.948%, hovering just below the 5% threshold it breached during last week's aggressive bond market sell-off.

Market participants continue to parse the long-term implications of last week's Federal Reserve decision, which saw the central bank lift its interest rate to 3.75%-4%

The rapid climb in the 2-year note yield reflects an immediate calibration to additional policy rate increases, driven by persistent cost-push inflation and elevated energy input costs.