The 10-year Treasury yield surpassed 4.2% following the remarks of Fed officials.

The 10-year Treasury yield surpassed 4.2% following the remarks of Fed officials.
The 10-year Treasury yield surpassed 4.2% following the remarks of Fed officials.

On Tuesday, the U.S. gained ground after Federal Reserve officials advised caution on the path of interest rate cuts.

The 10-year Treasury yield increased by 2 basis points to 4.2036%, surpassing 4.2% for the first time in three months, following a 12-basis-point jump on Monday.

The 2-year Treasury yield increased by 2 basis points to 4.0431%.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

This week is relatively calm on the data front, but there is a lot of Federal Reserve commentary, with several policymakers giving speeches.

While Neel Kashkari, President of the Minneapolis Fed, stated that the long-term trajectory for rates may be higher than in the past, Lorie Logan, President of the Dallas Fed, emphasized the need for a patient approach to lowering rates.

On Monday, Jeff Schmid, President of the Kansas City Fed, advised a "cautious and deliberate" approach to rate cuts following the Fed's 0.5 percentage point reduction in September.

Philadelphia Fed President Patrick Harker is due to speak Tuesday.

by Jenni Reid

Markets