FX.co ★ US 10-Year Treasury Yield at 2-Week High

The yield on the US 10-year Treasury note increased by 3 basis points to 4.13% on Friday, marking its highest level in two weeks. This rise positioned it for a weekly gain of 6 basis points as investors evaluated the Federal Reserve's first rate cut of the year and their revised economic projections. On Wednesday, the Federal Reserve lowered the federal funds rate by 25 basis points, in line with expectations, and forecasted an additional 50 basis point reduction in 2025, followed by another 25 basis point cut in 2026. During the post-meeting press conference, Chair Jerome Powell adopted a cautious stance, describing the rate cut as a "risk management" measure and warned that "there are no risk-free paths." The policymakers also upgraded GDP growth forecasts, indicating sustained economic strength, while the initial jobless claims came in lower than expected, suggesting that the labor market's weakness might be less pronounced than previously thought. On Friday, Minneapolis Fed President Neel Kashkari expressed his support for the decision, stating that he expects two more rate cuts this year.