Treasury yields moved higher as central banks pivot hawkish.

Treasury yields advanced during Thursday's session as global central banks shifted toward a more hawkish stance. The 10-Year yield reached a peak of 4.32%, its highest level since August, before pulling back to settle near 4.25%. Market activity was most pronounced in the short end of the curve, where 2-Year yields surged 20 bps to hit 3.95%. This repricing follows commentary from the Fed, the Bank of England, and the ECB regarding the potential for rate hikes in 2026, effectively removing previously anticipated rate cuts from market expectations. Volatility, as tracked by the CVOL index, increased alongside escalating global tensions and the continued impact of oil price fluctuations on global growth and price pressures.