FX.co ★ US 10-Year Yield Steadies Ahead of Fed

The yield on the US 10-year Treasury note settled around 4.22% on Tuesday following declines in recent sessions, as investors braced for the Federal Reserve’s forthcoming policy announcement. This meeting is expected to maintain the current interest rates. However, it is overshadowed by concerns regarding the Fed's independence, alongside speculation that President Donald Trump might appoint a new Fed chair within the week. Markets are also grappling with increased apprehension over a potential government shutdown, as Democratic leaders have threatened to obstruct a $1.2 trillion funding proposal if it includes additional appropriations for Homeland Security. Simultaneously, persistent geopolitical and trade uncertainties have bolstered the “sell America” trend, thereby sustaining Treasury yields.