U.S. Treasuries across tenures staged a reversal from the past week as hotter-than-expected inflation and hawkish interest rate rhetoric pushed yields higher in the week ending November 13, 2026.
- A post-election bond rally was cut short this week as stubborn consumer price data and hawkish Federal Reserve commentary weighed on sentiment.
- Driven by fears of impending monetary tightening, 2-year Treasury yields surged 35 basis points for the week, while 10-year yields climbed nearly 30 basis points to settle at 5.14%.
- The Dollar Spot Index advanced 0.7% to notch its best week since October 2.
U.S. bond prices reversed last week’s gains across tenures during the week ending November 13, as mounting evidence of persistent inflation shattered hopes that the post-election bond rally would mark the end of the year’s debt rout.
After a political shift in Washington during the mid-term elections sparked an enthusiastic flight-to-quality into sovereign debt, fixed-income investors were confronted with a harsh macroeconomic reality of stubborn price pressures and increasingly hawkish rhetoric from Federal Reserve officials during the week ending November 13.
The benchmark 10-year Treasury yield broke past the 5.00% threshold for the first time since the week ending October 26. U.S. two-year Treasury yields skyrocketed 35 basis points over the five sessions—marking their most dramatic weekly surge in over two years
The spread between the U.S. 10-year yield and the U.S. 2-year yield ticked lower by 7 basis points to 0.28% in the week.
The iShares 20+ Year Treasury ETF (TLT) ended its worst week since April 2025, dropping over 3% this week, while the shorter-duration iShares 1-3 year ETF (SHY) eased slightly so far this week, down 0.6%.
Retail sentiment on TLT and SHY was ‘bullish,’ with ‘high’ message volumes.
| Asset / Benchmark | Close (November 5) | Weekly Change |
| U.S. Dollar Index | 103.41 | +0.7% |
| U.S. 2-Year Treasury Yield | 4.86% | +35 bps |
| U.S. 10-Year Treasury Yield | 5.14% | +30 bps |
| U.S. 30-Year Treasury Yield | 5.47% | +26 bps |
| U.S. 10Y2Y Yield Spread | Flattening curve | – |
Yield Curve & Global Sovereign Markets
Selling pressure rippled across international sovereign debt markets, following the path of U.S. Treasuries. Borrowing costs have again come under investor scrutiny, with many tech firms continuing to expand fundraising activities through open markets or institutional-grade loans.
The repricing was catalyzed by October consumer price index figures that outpaced economists’ forecasts for the third consecutive month. Federal Reserve Governor Christopher Waller publicly endorsed a potential half-percentage-point rate hike if inflation momentum persists, a sentiment echoed by Dallas Fed President Lorie Logan and Chicago Fed President Austan Goolsbee during the week.
“This is a tougher environment than during the Covid pandemic and the global financial crisis… Those were big directional moves – today it’s about rolling supply shocks and wild rates volatility,” Kellie Wood at Schroders told Bloomberg.
The market has now fully priced in the probability of the Federal Reserve hiking interest rates in December.
Meanwhile, the Dollar Spot Index logged its most successful weekly performance since early October. The index advanced 0.7%, touching its highest since May 2025 as foreign exchange traders priced in a more aggressive Federal Reserve policy path.
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