US Treasury Yields Surge as ISM Manufacturing Index Hits Four-Year High

US Treasury yields climbed significantly following robust economic data showing the ISM Manufacturing Index held steady at a four-year high of 84.6. Two-year Treasury yields jumped 10 basis points this week to reach 3.88%, while the 10-year yield rose seven basis points to 4.37%. This strong industrial performance, with 13 industries reporting growth, underscores the persistent resilience of the US economy. Consequently, markets are pricing in higher-for-longer interest rate expectations, triggering a sell-off in government bonds. The surge in yields reflects investor concerns over tighter monetary conditions and potential pressure on equity valuations. Analysts suggest that the strength of the manufacturing sector may complicate the Federal Reserve's path toward future rate cuts.