FX.co ★ US 10-Year Yield Holds Rebound

The yield on the US 10-year Treasury note remained steady above the 4.1% mark on Wednesday, following its recovery from last month's one-year low of 3.95%. This resilience is attributed to persistent inflation concerns that bolster expectations of higher interest rates from the Federal Reserve. Recent unemployment claims data, released by the Department of Labor, suggest a degree of stability in new unemployment levels, which helps dispel fears of a significant labor market downturn implied by private surveys. Current rate futures indicate that a slight majority of market participants now anticipate the Federal Reserve will maintain its rate next month, contrasting with the nearly universal expectation of a 25 basis point cut just a week ago. The forthcoming release of the minutes from the Federal Open Market Committee's (FOMC) recent meeting, which featured conflicting views, is expected to provide insight into the growing divisions within the Fed, as policymakers' statements illustrate a broader spectrum of appropriate monetary policy measures.