FX.co ★ Treasury Yields Edge Lower

The yields on the US 10-year Treasury dropped to 4.1% on Friday, partially reversing the almost 5 basis points surge observed during the previous session, as investor sentiment leaned towards caution. Market participants are evaluating the prospects of the US economy while awaiting updates on the rescheduled release of delayed economic indicators—critical data for assessing the current economic climate. While some of these reports might be published imminently, others may never see the light of day. According to White House Press Secretary Karoline Leavitt, certain economic data impacted by the government shutdown may remain permanently unavailable. In parallel, traders have reduced the likelihood of a Federal Reserve rate cut in December to below 50%, a decrease from nearly 65% earlier in the week. This adjustment was prompted by remarks from several Federal Reserve officials who cast doubt on the necessity of a third consecutive rate decrease, citing the economy's robustness and ongoing uncertainty surrounding inflation.