The US 10-year Treasury yield dipped slightly below 5% on Thursday, extending its pullback after the Federal Reserve left interest rates unchanged, as widely anticipated, but offered little clarity on its next policy steps. Fed Chair Kevin Warsh also indicated that the central bank may cut the number of policy meetings with rate decisions from eight to six per year, a move that could inject additional uncertainty into markets.
Two policymakers dissented in favor of a 25-basis-point rate increase, bolstering expectations for a potential hike in December amid ongoing, energy-driven inflation pressures. Investors are now awaiting the release of the US PCE price index, the Fed’s preferred inflation gauge, for further insight into the future path of monetary policy.
Markets are also closely watching upcoming policy announcements from the European Central Bank and the Bank of Japan, with both central banks widely expected to leave interest rates unchanged.
