FX.co ★ US 10-Year Yield Holds Above 4.1%

The yield on the 10-year U.S. Treasury note remained above 4.1% on Wednesday, sustaining its rise from the one-year low of 3.95% seen in late October. This is amid growing speculation that the Federal Reserve will opt not to reduce rates next month. The minutes from the Federal Open Market Committee's (FOMC) recent meeting highlight a deepening divide among policymakers about the appropriate interest rate level, with key members suggesting that persistent inflation might justify maintaining rates in December. The expectation of holding rates steady next month was further supported when the Bureau of Labor Statistics (BLS) announced it would release November employment data only after the FOMC's decision. The initial unemployment claims data, published by the Department of Labor, indicated some stability in new unemployment figures, which has alleviated fears of a significant weakening in the labor market, as private surveys had suggested. Additionally, these surveys have shown evidence of stubbornly high inflation, lending support to the more hawkish members of the FOMC.