US 10-year treasury yields surge above 4% once again, why?

US 10-year treasury yields rose for the second straight session above 4% on track for more gains in upcoming weeks. 

The gains came after remarks by Fed officials that indicated there would be no early interest rate cuts this year. 

US Yields

US 10-year treasury yields rose 0.4% today to 4.079%, with a session-low at 4.037%, after rising 2.9% on Tuesday, the biggest profit in 2024, and the largest since November. 

Fed Remarks

Federal Reserve member Christopher Waller said the US is close to achieving its 2% target inflation in the medium term, but the Fed still can't rush into early rate cuts. 

He asserted the need for more information in upcoming months to ensure that inflation has sustainably declined. 

US Rates 

Following the bullish remarks, the odds for a 0.25% interest rate cut at the March meeting fell to 65%.

Now investors await important US retail sales and industrial production data to gather clues on the likely path ahead for policies.