Saxo Bank's strategy team said in a report that as the Federal Reserve is likely to cut interest rates further next year, the focus of the market's attention is the further steepening of the US Treasury yield curve. Although the two-year benchmark US Treasury yield is still anchored around 3.50%, the 10-year US Treasury yield hovers above the nearly three-month high of 4.20%. Interest spreads on 10-year and 2-year US Treasury yields closed above 66 basis points last Friday, the first time since 2025 and the largest since early 2022.

Saxo Bank's strategy team said in a report that as the Federal Reserve is likely to cut interest rates further next year, the focus of the market's attention is the further steepening of the US Treasury yield curve. Although the two-year benchmark US Treasury yield is still anchored around 3.50%, the 10-year US Treasury yield hovers above the nearly three-month high of 4.20%. Interest spreads on 10-year and 2-year US Treasury yields closed above 66 basis points last Friday, the first time since 2025 and the largest since early 2022.