FX.co ★ US 10-Year Yield Steady as Investors Assess Fresh Data

The yield on the US 10-year Treasury note was little changed at 4.08% on Friday, as investors weighed slowing economic growth against firm inflation data and persistent geopolitical risks. The US economy grew at an annualized rate of 1.4% in Q4, a sharp deceleration from 4.4% in Q3 and below the 3% consensus forecast, raising doubts about the economy’s resilience amid tariffs and the government shutdown. At the same time, PCE figures showed personal income and spending posted solid gains in December, while both headline and core inflation rose more than expected. Minutes from the latest FOMC meeting underscored divisions among policymakers, with some indicating that additional rate hikes could be justified if inflation remains elevated. While markets have scaled back expectations for aggressive easing, they still anticipate two 25-basis-point rate cuts by year-end. Rising tensions with Iran, as President Donald Trump considers further action, also bolstered demand for safe-haven Treasuries.