US 10-Year Treasury Yield Surpasses 4.75%, Marking New Phase in Financial Markets

Last week, the yield on US 10-year Treasuries surpassed 4.75% for the first time since January 2025, reflecting strong expectations that the Federal Reserve (Fed) will hike interest rates to combat high inflation. This shift in the trend of yields is an important indicator of market sentiment regarding future monetary policy, especially when accompanied by other economic signals such as recent increases in oil prices. The rise in financing costs can directly influence investment and consumption decisions by households and businesses, potentially affecting economic expansion. Additionally, this trend in yields may also reflect a reassessment of growth expectations for the coming quarters, leading to a reevaluation of investment strategies across the global financial system. Source: Bloomberg Markets