FX.co ★ US 10-Year Yield Holds Advance

The yield on the 10-year US Treasury remained close to 4.11% on Friday, following an increase of nearly 10 basis points over the previous two sessions. This movement came after the Federal Reserve indicated a stance that was less dovish than the markets had anticipated. Earlier in the week, the Fed issued a widely expected quarter-point cut and forecasted two additional reductions within the year, while indicating just one rate cut for 2026. Fed Chair Jerome Powell described the decision as a risk management measure in response to weaknesses in the labor market, stressing that there was no immediate need to hasten the easing process. Furthermore, data released on Thursday showed a decline in weekly jobless claims, overturning the spike observed in the prior week. Simultaneously, the Fed continued with its quantitative tightening measures, despite a significant decrease in its overnight reverse repo facility since the last meeting.