FX.co ★ US 10-Year Yield at Over 3-Week Low

The yield on the 10-year U.S. Treasury settled near 4.11% on Tuesday, marking its lowest level in over three weeks. Investors are awaiting the FOMC minutes for greater clarity on future policy directions. Current market expectations suggest two rate cuts in 2026, yet policymakers remain split on the future course, with the majority predicting only one cut. Additionally, there is growing attention on the upcoming selection of the new Federal Reserve Chair, as President Trump is anticipated to announce Jerome Powell's successor early next year, a decision likely to impact forecasts for future monetary policy. Concurrently, data released Monday indicated that pending U.S. home sales increased by 3.3% in November, exceeding the predicted 1% rise, pointing to rising demand in the housing market amidst declining mortgage rates. However, the Dallas Fed December manufacturing survey showed deteriorating business conditions in Texas, with numerous indicators reporting negative outcomes.