The profitability of US Treasury bonds reaches new highs – what’s happening in the market?

The beginning of 2026 brought changes to the US debt market. Treasury bonds declined, and yields soared, signaling a clear shift in investor sentiment regarding economic prospects.

## Market Data – Where are the turning points?

The 30-year US bonds rose to 4.88%, reaching the high from early September. At the same time, the yield on 10-year notes increased to 4.19%. These increases occurred with respective rises of 4 and 2 basis points, which are considered noteworthy movements in the bond market.

What is behind this movement? The answer is simple – the market is starting to believe in the strength of the American economy. When investors see better economic prospects, they lose interest in assets considered safe havens. US Treasury bonds traditionally serve this protective role, so their rebound opens new opportunities for other asset classes.

## Labor Market – A Key Signal

Recent data on unemployment in the US showed that the number of new unemployment benefit claims fell to one of the lowest levels since the beginning of the year. This sends a clear message: the labor market remains stable and resilient.

According to Eugene Leow, a fixed income strategist at DBS Bank, the gradual increase in long-term US bond yields may reflect growing confidence in the economy’s health. The same energy is also evident in the stock market, where parallels in investment style can be observed.

In summary: US bonds are entering a new phase where economic optimism drives capital shifts away from defensive assets. Is this a lasting trend or just a moment? The coming weeks may provide answers.