US 2-Year Treasury Yield Rises to 4.51% as Traders Bet on December Rate Hike

Key Facts

The US 2-year Treasury yield rose to 4.51% as traders shifted toward betting on a December rate hike. 24/7 Wall St. reported that market participants adjusted their expectations following strong labor data, which diminished hopes for a Federal Reserve pivot toward rate cuts.

This upward pressure follows official data from November 6, 2026, showing Non-Farm Payrolls added 165,000 jobs, significantly exceeding the forecast of 65,000. Average Hourly Earnings also grew by 0.4% on the same date, reinforcing concerns over persistent inflation and leading markets to price in higher borrowing costs for rate-sensitive sectors like regional banking and housing.

Market attention now turns to the US inflation report scheduled for November 10, 2026, with the annual inflation rate forecasted at 3.9%. Fed Governor Waller is also scheduled to speak on the same day, potentially providing further clarity on monetary policy ahead of the December meeting.