FX.co ★ US 10-Year Yield Holds Decline on Dovish Fed View

The US 10-year Treasury yield remained steady at approximately 4.23% on Thursday, following a 5 basis point decline in the previous session. This stability is largely due to market expectations for significant Federal Reserve rate cuts this year, which continue to exert downward pressure on yields. Recent softer US inflation data indicates that President Donald Trump's tariffs are not adding to price pressures, while signs of a cooling labor market have reinforced the dovish sentiment. The markets have almost completely priced in a rate cut for September, with some predicting a more substantial 50-basis-point reduction. Treasury Secretary Scott Bessent has also advocated for multiple rate cuts, suggesting that the Federal Reserve could begin its easing cycle with a half-point reduction. Investors are now looking ahead to July's producer price index and the weekly jobless claims for further guidance on monetary policy.