FX.co ★ US 10-Year Yield Edges Higher as Fed Remains in Focus

The yield on the US 10-year Treasury note climbed to approximately 4.15% on Monday, marking the fourth consecutive session of increases. This rise comes as investors looked forward to new insights from Federal Reserve officials and an important US inflation report scheduled for this week. Federal Reserve Chair Jerome Powell, along with around nine other officials from the Fed, is set to make public statements. Market participants are keenly observing these to gain insights into the future direction of interest rates. Additionally, Fed Governor Stephen Miran will present an in-depth defense of his stance as the sole dissenter in last week’s meeting, where he advocated for a larger 50 basis point rate reduction. Anticipations are high for the forthcoming release of the PCE price index on Friday, which serves as the Fed's preferred gauge of inflation and is expected to reflect relatively muted inflationary pressures. In the previous week, the central bank executed a widely anticipated 25 basis point rate cut, marking the first reduction since December, while also indicating the potential for two further cuts within the year.