Government bond yields reached their highest levels since mid-summer, driven by the Federal Reserve’s recent rate cut and potential election impacts. The 10-year U.S. Treasury note yield hit 4.26%, and the 2-year note yield reached 4.07%. This rise follows the Fed’s 0.5 percentage point rate cut on Sept. 18, indicating market expectations for higher future interest rates. Higher yields lower existing bond values and affect the broader economy, influencing corporate and consumer borrowing costs, including mortgages.