U.S. 10-Year Treasury Yield Climbs to 4.086% After BOJ Rate Hike Signal

The U.S. 10-year Treasury yield rose to 4.086% on Dec. 2, up approximately 3.12% from its recent low of 3.962%, market data show. The move followed signals from the Bank of Japan on potential rate hikes, with the 10-year Japanese Government Bond yield breaching 1%. Japanese investors, the largest foreign holders of U.S. Treasuries, are expected to cut U.S. debt holdings and shift capital to domestic bonds as JGB yields rise, removing the need to absorb currency fluctuations. The uptick in U.S. Treasury yields reflects market expectations of higher global dollar borrowing costs, which typically weigh on risk assets.