FX.co ★ US 10-Year Yield Slumps to Below 4%

The yield on the US 10-year Treasury note dipped below the 4% mark on Friday following an inflation report that was less robust than anticipated, bolstering expectations for another Federal Reserve rate cut this year. Due to the ongoing government shutdown, the Bureau of Labor Statistics released the Consumer Price Index (CPI) data later than usual. This made it the first piece of official US economic data available since the shutdown commenced, thus amplifying its significance. Both headline and core inflation figures came in below projections, fueling anticipation of a 25 basis points rate cut by the Fed in the coming week. In late October, yields on US Treasuries declined across various maturities as President Trump resumed trade tensions with China. The suspension of government activities, along with halted payroll services and emerging indications of bad loans for local US banks, further impaired growth outlooks.