FX.co ★ Treasury Yields Decline

The yield on the US 10-year Treasury note decreased to 4.12% on Tuesday, as market participants awaited delayed economic data releases. Among these is the anticipated jobs report scheduled for later this week, which is expected to shed more light on the state of the US economy and inform the Federal Reserve's future interest rate decisions. In recent weeks, several Federal Reserve officials have warned against further rate cuts in December, citing persistent inflationary concerns. On Monday, Fed Governor Chris Waller and Fed Vice Chair Philip Jefferson both addressed labor market risks. While Waller expressed his support for a rate reduction next month, Jefferson suggested that the central bank should approach any additional cuts with caution. Consequently, market expectations for a 25 basis point rate cut in December have diminished to about 43%, a significant drop from the previous week.