FX.co ★ US 10-Year Yield Pressured by Fed Cut Bets

The yield on the 10-year US Treasury note was approximately 4.1% on Friday, maintaining its recent decline amid strong expectations of further interest rate cuts by the Federal Reserve. Markets are almost fully anticipating a 25 basis point reduction this month, with an additional cut expected by December. Politically, the ongoing government shutdown has not yet shown significant immediate economic repercussions, but it has increased concerns regarding fiscal uncertainty, potential inflation threats, and the fragility of the labor market. Treasury Secretary Scott Bessent cautioned on Thursday that the funding gap might negatively impact GDP growth, while President Donald Trump issued threats of substantial federal layoffs to exert pressure on the Democrats. The shutdown has also led to a halt in data release, causing the Labor Department to delay Friday's report on the September nonfarm payrolls.