FX.co ★ US 10-Year Yield Steadies as Fed Outlook Mulled

The yield on the 10-year US Treasury note stabilized around 4.08% on Wednesday, halting its recent rise as investors considered the Federal Reserve’s policy trajectory. Current market projections suggest an 89% probability of a 25 basis point rate cut next week. In addition, around 90 basis points in total easing are anticipated by 2026. Speculation that Kevin Hassett, the White House economic advisor, might be nominated as the future Fed chair has reinforced a dovish outlook. Hassett is known for advocating quicker rate cuts, aligning with former President Donald Trump's approach. The focus now shifts to the upcoming ADP employment report for November, which will provide further insights into labor market conditions. Earlier this week, Treasury yields surged in response to rising bond yields in Japan and Europe, driven by hawkish signals from foreign central banks.