Government bond yields have reached their highest levels since mid-summer, driven by the Federal Reserve’s recent rate cut and the upcoming November election. The 10-year U.S. Treasury note yield rose above 4.2%, and the 2-year government bond yield hit 4.06%. This increase follows the Fed’s 0.5 percentage point rate cut on Sept. 18, signaling that investors expect higher future interest rates. Higher bond yields result in lower existing bond values and impact the broader economy, including corporate and consumer borrowing costs.