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12-20 14:43

Since early last week, the 10-year Treasury yield has risen for nine consecutive trading days, marking the longest streak since 1978. $Micro 10-Year Yield - main 2412(10Ymain)$

The Fed's latest rate "dot plot" indicates policymakers expect only two 25-basis-point rate cuts by the end of 2025, halving the rate cut expectations compared to September.

Ian Lyngen, head of US rate strategy at BMO Capital Markets, noted that the weakness in longer-term Treasuries is driven by the Fed's hawkish stance and pressures from Treasury issuance. He added that the trend of curve steepening still has a long way to go before the end of 2024.

Charlie Bilello, chief market strategist at Creative Planning, pointed out that while it has been three months since the Fed's first rate cut, the 10-year Treasury yield has surged by about 86 basis points. This contrasts sharply with the start of previous rate-cutting cycles, during which 10-year Treasury yields either declined or remained relatively stable.

US Treasury Yields Surge: Are Bonds Now Better Than Stocks?
The 10-year U.S. Treasury yield has steadily climbed from its mid-September low of 3.60% due to Fed hawkish stance. Notably, since early last week, the 10-year Treasury yield has risen for nine consecutive trading days, marking the longest streak since 1978. ------------------- With 10Y Treasury yields risesto 4.5%: Is investing in U.S. Treasuries now more worthwhile than stocks?
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