Interest Rates Dropped... Why Is Yields Rising?United States 10 Year Government Bonds YieldTVC:US10YLegendSinceWhy Yields Can Rise After a Rate Cut When people say “interest rates dropped,” they usually mean central bank policy rates (like the Fed cutting rates). But bond yields (like US10Y) are set in the open market, based on supply/demand and expectations about inflation, growth, and future rate paths. Rate cuts can be inflationary: Lower borrowing costs can stimulate spending and growth, which raises inflation expectations → investors demand higher yields. Market front-running: If the cut was already priced in, traders may rotate out of bonds (selling pushes prices down, yields up).