Longer-term U.S. Treasury yields have reached multi-month highs, outpacing shorter-term yields amid expectations of policy changes.
The Biden administration under Janet Yellen has seen increased sales of Treasury bills, creating a disparity that may need addressing by President-elect Trump’s Treasury nominee.
Ten-year yields climbed to 4.73%, the highest since April, while two-year yields have remained steady at around 4.27%.
Market analysts suggest that reliance on short-term debt could lead to greater refinancing risks, warranting a shift to long-term financing.
While immediate increases in longer-dated debt are not expected, market participants are preparing for potential announcements in upcoming quarterly refundings.