FX.co ★ US 10-Year Yield Holds Near 2-Month Low

The yield on the 10-year US Treasury note remained steady at approximately 4.25% on Wednesday, lingering near its lowest point in two months. This stabilization comes amid investor concerns surrounding dovish expectations for Federal Reserve policy and ongoing fiscal challenges. On Tuesday, Fed Chair Jerome Powell emphasized the central bank's current cautious stance regarding further interest rate reductions, though he did not dismiss the possibility of a decrease in rates at the upcoming meeting this month. He further explained that the Fed might have already undertaken rate cuts if not for the inflationary pressures stemming from President Donald Trump’s tariff measures. In parallel, the Senate narrowly passed Trump’s tax-and-spending legislation, which is anticipated to increase the national debt by $3.3 trillion, prompting the bill's return to the House for final endorsement. Investors are now turning their attention to the ADP private payroll report expected on Wednesday and the highly anticipated June jobs report on Thursday for additional insights into labor market strength and potential Federal Reserve strategies.