The yield on the 10-year U.S. Treasury note decreased to approximately 4.16% on Wednesday, retreating after nearing September highs in the session prior. Investors are increasingly optimistic about further monetary easing by the Federal Reserve in the coming year. Market predictions now suggest up to two additional rate cuts in 2026. This outlook persists despite preliminary third-quarter GDP data indicating that the U.S. economy expanded at an impressive 4.3% annualized rate, significantly outpacing the 3.3% forecast and representing the most robust growth in two years. This strong performance contradicts concerns that tighter financial conditions had adversely impacted the labor market, lending weight to Fed officials' arguments for a more cautious approach to rate adjustments. Yet, policymakers still project one rate cut in 2026. It is important to note that bond trading will close early today and will be suspended on Thursday due to the observance of the Christmas holiday.