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

The yield on the US 10-year Treasury note stabilized at approximately 4.24% on Wednesday, after experiencing an increase the previous day. Investors are keenly anticipating the Federal Reserve's expected decision to maintain the current interest rates. Market participants will be closely observing for any insights related to the timing of a possible rate cut, with expectations leaning towards two potential quarter-point reductions by the year's end. Additionally, there is speculation that President Trump might announce a new Federal Reserve Chair this week, who could potentially align with his preference for more aggressive policy easing. Concurrently, the markets are contending with the possibility of another government shutdown, as Democratic leaders have threatened to oppose a $1.2 trillion funding bill if it includes additional allocations for Homeland Security. On another front, the dollar has fallen to a four-year low following President Trump's comments downplaying concerns over its recent depreciation. This suggests the administration's acceptance of a weaker dollar to bolster export activities.