FX.co ★ US Treasury Yields Edge Higher

On the first trading day of December, the yield on the US 10-year Treasury note increased to 4.04%, continuing its rebound from Friday's abbreviated session. This movement mirrored a rise in Japanese 10-year government bond yields, which reached their highest point since 2008 amid anticipation of a potential Bank of Japan rate hike this month. Such an increase in Japanese rates could prompt domestic investors to favor local bonds over international options like US Treasuries. Additionally, market indicators suggest that the probability of a 25 basis points cut to the federal funds rate at next week's Federal Reserve meeting remains above 87%. In other developments, President Trump announced on Sunday that he has selected the next Federal Reserve Chair, and reports indicate that Kevin Hassett, the Director of the White House National Economic Council, is a prominent candidate. This week, investors will closely monitor several critical economic reports, including the postponed September PCE figures and the ISM manufacturing and services PMIs.