FX.co ★ US 10-Year Yield Stabilizes Ahead of Fed Meeting

On Tuesday, the yield on the US 10-year Treasury hovered around 4.04%, maintaining its position near a five-month low as the Federal Reserve commences its two-day policy meeting. The market has almost entirely anticipated a 25 basis point reduction this week, with projections of a cumulative 67 basis points of easing by the end of the year. These expectations are bolstered by data that suggest a cooling labor market alongside subdued inflation, despite existing tariffs. President Donald Trump has advocated for a "larger" rate cut, highlighting weakness in the housing market as a primary concern. From an economic data perspective, investors will be closely monitoring retail sales, import prices, housing indicators, and business inventories throughout the day. On the trade front, President Trump indicated on Monday that the US-China negotiations in Spain were progressing, with a call between him and Chinese President Xi Jinping scheduled for Friday to finalize the details.