FX.co ★ US 10-Year Yield Inches Lower

The yield on the 10-year U.S. Treasury note dipped to below 4.12% on Tuesday, retreating from the three-week peak reached last Friday. This change comes as market participants evaluated the Federal Reserve's potential rate trajectory and considered the economic ramifications of a possible government shutdown. Recent data indicated an increase in job openings for September, sustaining a level of uncertainty regarding the direction of the U.S. labor market. This is compounded by conflicting signals, as a decrease in payroll numbers contrasts with more positive unemployment claims data. Indications of a softening labor market prompted the Federal Open Market Committee (FOMC) to initiate a cut in rates in September. However, persistent inflation has curtailed expectations for further easing of financial conditions. Additionally contributing to bond support, consumer confidence, as assessed by the Conference Board, showed a decline. Meanwhile, the U.S. government is on the brink of a shutdown scheduled for tomorrow, putting essential services at risk. Furthermore, President Trump has issued threats to terminate numerous government employees.