FX.co ★ US 10-Year Yield Holds Above 4%

The yield on the 10-year U.S. Treasury note remained above 4% on Monday, following a rebound in the previous session. This development comes as the regional banking sector shows signs of stabilization after brief credit concerns. Additionally, easing tensions between the U.S. and China are providing further support, with President Donald Trump remarking that his proposed 100% retaliatory tariffs on Chinese goods would be unsustainable. Investors are now turning their attention to the September Consumer Price Index (CPI) report, set to be released on Friday. The report is anticipated to indicate persistently high inflation, an outcome that traders will scrutinize closely in light of the ongoing information gap caused by the government shutdown. In terms of monetary policy, the Federal Reserve is broadly expected to reduce interest rates by 25 basis points next week. An additional rate cut is anticipated in December, with the possibility of three more in 2026, as concerns grow over the labor market and subdued inflation pressures continue, even amidst tariff-related uncertainties.