FX.co ★ US 10-Year Yield Stabilizes

The yield on the US 10-year Treasury note remained close to 4% on Tuesday following a decline in the previous session. This movement is as investors continue to assess the prolonged government shutdown, trade uncertainties, and the future of monetary policy on the economy. Kevin Hassett, Director of the National Economic Council, expressed optimism that the shutdown might conclude this week, potentially resolving the current disruption. Regarding trade, President Donald Trump signaled his expectation for a favorable agreement with China's President Xi Jinping during their upcoming meeting in South Korea. Furthermore, investors are eagerly awaiting the CPI report for September, due on Friday, amidst a scarcity of data releases resulting from the shutdown. The market largely anticipates a 25-basis-point rate cut by the Federal Reserve next week, with further reductions expected in December and continuing into the following year.