FX.co ★ US 10-Year Yield Holds Near Two-Month Lows

The yield on the US 10-year Treasury note hovered around 4.85% on Friday, staying near its lowest level in two months as deepening losses in global equity markets drove investors into safe-haven government bonds. The move lower in yields followed a sweeping Democratic victory in the US midterm elections, which intensified concerns about tighter regulatory oversight of the artificial intelligence sector and a potential slowdown in data center expansion. At the same time, investors turned their attention to Friday’s US employment report for fresh signals on labor market conditions. Recent data from ADP showed that private employers added 86,000 jobs in October, while initial jobless claims fell to their lowest level in 57 years. Despite these relatively robust labor market indicators, markets scaled back the implied probability of a Federal Reserve rate increase in December to about 68%, from nearly 83% just a day earlier.