FX.co ★ US 10-Year Yield Holds Decline Ahead of Fed

On Wednesday, the yield on the 10-year US Treasury note stabilized around 4.33%, following a significant decline in the previous session. This occurred as investors adopted a cautious approach ahead of the Federal Reserve's policy announcement. While the Fed is largely anticipated to maintain current rates, market attention is riveted on any indications that might suggest a potential rate cut by September. President Donald Trump has persistently urged the Fed to reduce borrowing costs. It is expected that Fed Governors Christopher Waller and Michelle Bowman, both regarded as potential candidates to lead the central bank, may express dissent in this month's meeting. Additionally, investors are closely monitoring forthcoming economic data, including figures on private payrolls, GDP, and pending home sales, in order to further evaluate the economy's condition. Meanwhile, uncertainty in trade negotiations remains after the US-China discussions in Stockholm concluded on Tuesday without reaching an agreement to extend the current truce. Treasury Secretary Scott Bessent noted that any agreement would ultimately require President Trump's final approval.