The yield on the 10-year Treasury note increased to 4.35% on Monday, extending last week's gains. This uptick is attributed to factors such as the Fed's cautious stance on rate cuts and the potential economic impact of recent tariffs.
Investors are particularly focused on the Fed's upcoming decisions, as the central bank is expected to maintain its policy rate between 4.25% and 4.5%. Despite strong employment data, analysts believe that the Fed will likely hold off on rate cuts until later this year, unless there is a significant slowdown in the labor market.
The bond market's response suggests a cautious outlook, with investors awaiting clearer signals from the Fed and developments in trade policies. The outcome of this week's Fed meeting could provide further direction for Treasury yields and broader market sentiment.