Treasury Yields Fluctuate After Trump Victory

Following the Federal Reserve's recent 25 basis point rate cut, U.S. Treasury yields have experienced fluctuations as investors assess economic conditions and potential policy impacts. On Wednesday, yields climbed significantly after Donald Trump's presidential election victory, with the 10-year Treasury yield reaching 4.479%, its highest since July, due to expected economic policy shifts that could increase deficits and inflation. However, these yields slightly declined on Thursday as investors awaited further guidance from the Federal Reserve and considered the implications of Trump's policies on inflation and monetary policy. Fed Chairman Jerome Powell emphasized that future policy decisions would be data-driven without a preset path. Meanwhile, the bond market remains cautious of increased federal deficits and borrowing, influenced by potential Republican fiscal policies.