FX.co ★ US 10-Year Yield Inches Higher

The yield on the US 10-year Treasury note edged up to 4.06% on Tuesday, after briefly dipping below 4% on September 11th, as markets evaluated strong economic data in anticipation of the Federal Reserve's policy decision set for tomorrow. Retail sales increased by 0.6% in August, while the control group index, a significant component affecting US GDP, climbed by 0.7%, marking the fourth consecutive month of growth. This data highlights the robustness of consumer spending, countering fears of an unchecked economic downturn that have surfaced following negative jobs reports. Signs of a weakening labor market have led the Fed to indicate it will resume its rate-cutting cycle tomorrow with a 25 basis points reduction. Meanwhile, the Summary of Economic Projections will provide insights into how the Federal Open Market Committee (FOMC) is weighing the risks of persistent inflation against rising unemployment. Additionally, import prices unexpectedly increased in August, suggesting a possible inflationary effect stemming from tariffs.