FX.co ★ Treasury Yields Fall for 2nd Session

The yield on the US 10-year Treasury note decreased by nearly 3 basis points, settling at 4.13% on Thursday. This marks its second decline in a row, bringing the yield to its lowest point in approximately a week. As anticipated, the Federal Reserve implemented a third consecutive 25 basis point rate cut. The Fed's latest projections remain consistent with the September outlook, indicating a single additional cut expected in 2026. During the press conference, Fed Chair Powell nearly eliminated the likelihood of a rate increase, assuring investors that policymakers have not shifted towards a more hawkish approach. Concurrently, the Fed announced that it will initiate a purchase of $40 billion in short-term Treasury securities starting Friday. This move comes shortly after the cessation of the balance-sheet runoff and is anticipated to alleviate upward pressure on borrowing costs.