U.S. Treasury yields reach multi-month highs as market lowers expectations for Fed rate cuts next year

Jinse Finance reported that U.S. Treasury yields have risen to their highest levels in more than two months, following declines in most global government bond markets as investors prepare for three U.S. bond auctions and this week's Federal Reserve interest rate decision. Treasury yields rose overall by 3 to 6 basis points, with mid-term bonds performing the weakest. The Treasury will issue $58 billion in 3-year bonds at 1 p.m. New York time, and will issue $39 billion in 10-year bonds on Tuesday and $22 billion in 30-year bonds on Thursday. The Treasury has adjusted this week's auction schedule to align with the Federal Reserve's two-day policy meeting. Traders believe there is about a 90% probability 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."