The yield on U.S. Treasury bonds is rising, but expectations of a rate cut by the Federal Reserve still exist.

Driven by the Bank of Japan's 25 basis point interest rate hike to 0.75%, US Treasury yields rose in the middle of the pre-European trading session. Despite the significant drop in the US Consumer Price Index data released on Thursday, which raised concerns about its quality and completeness due to data collection issues during the government shutdown, the market still expects a rate cut from the Federal Reserve. Analysts at BNP Paribas in France stated in a report, "While we believe the Federal Reserve will react cautiously to this data, it may also not help to divert policymakers' attention from the rising unemployment rate. We continue to expect a rate cut at the March meeting." According to data from Tradeweb, the 10-year US Treasury yield rose by 2.9 basis points to 4.144%, while the 30-year US Treasury yield rose by 3 basis points to 4.830%.