FX.co ★ US 10-Year Yield Tracks Global Peers Higher

The yield on the 10-year US Treasury note climbed to approximately 4.08% on Thursday, reversing the decline observed in the prior session. This shift aligns with a global uptick in bond yields driven by a more hawkish monetary policy outlook in major economies. Notably, Japan's 10-year bond yield soared to an unprecedented 18-year high based on speculation that the Bank of Japan may raise interest rates later this month. This was accompanied by an auction of 30-year Japanese Government Bonds (JGBs), which saw the strongest demand since 2019. Similarly, Australia's 10-year yield ascended to its highest level in over a year, bolstered by robust economic data that suggest a potential rate hike by the Reserve Bank next year. In the United States, an unexpected decline in private payrolls has amplified concerns regarding a weakening labor market, thereby increasing the likelihood of a Federal Reserve rate cut next week. Meanwhile, markets are contemplating the potential replacement of Fed Chair Jerome Powell by White House economic adviser Kevin Hassett in May, which could lead to a more aggressive policy of easing.