FX.co ★ US 10-Year Treasury Yields Steadies

The yield on the US 10-year Treasury note hovered around 4.69% on Tuesday, as investors reassessed the Federal Reserve’s policy outlook against the backdrop of heightened geopolitical uncertainty in the Middle East. Markets are currently assigning roughly a 65% probability to a 25 basis point Fed rate hike in September, following the central bank’s decision to leave interest rates unchanged in July. That decision was not unanimous, with three policymakers dissenting, and Chair Kevin Warsh offering little concrete guidance on the future path of rates. At the same time, New York Fed President John Williams said monetary policy remains appropriately positioned, noting that inflation is expected to moderate in the second half of the year. Investors now await the latest JOLTS job openings figures and international trade data due later today for additional insight into the strength of the US economy.