FX.co ★ US 10-Year Yield Rises as Traders Eye PCE Data

The yield on the 10-year U.S. Treasury note increased to approximately 4.3% on Tuesday, marking a consecutive session of gains as investors looked forward to the upcoming release of the PCE price index, the Federal Reserve’s favored inflation gauge. Tuesday's economic calendar features several key indicators including durable goods orders, consumer confidence figures, the Case-Shiller Home Price Index, and the Richmond Fed Manufacturing Index. Market volatility was further fueled by political developments after President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook, citing allegations of mortgage fraud. This development has intensified concerns regarding the Federal Reserve’s independence and its capacity to establish monetary policy without political influence. Analysts have indicated that Cook’s dismissal might boost the likelihood of earlier interest rate cuts, especially in light of Trump's continued pressure on the Fed to decrease borrowing costs. Futures markets are currently reflecting an 83% probability of a 25 basis point rate cut at the upcoming September meeting.