FX.co ★ US 10-Year Yield Edges Lower

The yield on the 10-year US Treasury decreased slightly to approximately 4.14%, amid subdued trading due to the holiday period, as markets anticipate interest rate reductions next year. Investors continue to foresee two rate cuts in 2026. However, there is a division among Federal Reserve officials, with the majority predicting only one cut. Recent GDP figures showcased a strong annualized growth rate in the third quarter, bolstering confidence in economic growth and moderating expectations for swift action from the Fed. Focus is also turning to the appointment of the next Federal Reserve Chair, as President Trump is expected to announce Jerome Powell’s successor in early 2026. This decision could significantly influence the future policy direction of the central bank. In the meantime, traders are eagerly awaiting the release of the FOMC minutes on Tuesday for additional insights into the future trajectory of interest rates.