U.S. Treasury yields hit multi-month highs as markets lower expectations for Fed rate cuts next year

According to Jinse Finance, U.S. Treasury yields have risen to their highest levels in over two months after most global government bond markets fell, as investors prepare for three U.S. bond auctions and this week’s Federal Reserve rate decision. Treasury yields rose by 3 to 6 basis points overall, with mid-term bonds performing the weakest. The Treasury will issue $58 billion in 3-year notes at 1 p.m. New York time, and will auction $39 billion in 10-year notes and $22 billion in 30-year bonds on Tuesday and Thursday, respectively. The Treasury adjusted this week’s auction schedule to accommodate the Fed’s two-day policy meeting. Traders believe there is about a 90% chance that the central bank will cut rates by 25 basis points for the third consecutive time. With inflation remaining stubbornly high, market participants will interpret the officials’ outlook for 2026 through the “dot plot.”