The yield on the 10-year US Treasury note hovered near 5% during Thursday’s post-holiday session, holding onto gains from earlier in the week amid growing expectations of additional Federal Reserve rate hikes. The rise was fueled by stronger-than-expected October inflation data and increasingly hawkish signals from Fed policymakers. Fed Governor Christopher Waller indicated that a 50-basis-point increase in December could be justified, while Dallas Fed President Lorie Logan supported at least two more 25-basis-point hikes as inflationary pressures persist. Markets are currently pricing in approximately a 91% probability of a rate increase next month, with further tightening in January and potentially April also being considered. Investors are now awaiting Thursday’s initial jobless claims and existing home sales reports for further indications of inflationary trends, labor market conditions and the broader economic outlook.