FX.co ★ US 10-Year Yield Steadies Ahead of CPI

The yield on the US 10-year Treasury note remained unchanged at approximately 4.18% on Tuesday, as market participants awaited the forthcoming consumer inflation data, a report that could heavily impact Federal Reserve policy decisions. Currently, market sentiment suggests two interest rate cuts this year, beginning in June; however, an unexpected rise in inflation could limit the central bank's capacity to loosen monetary policy. The previous week's nonfarm payrolls report indicated that job growth in December fell short of predictions, supporting a more cautious perspective on Fed policy. Additionally, investors were on alert for an imminent US Supreme Court decision regarding the legality of former President Trump's tariff policies, anticipated on Wednesday. Meanwhile, Treasury yields experienced fluctuations on Monday after federal prosecutors suggested a potential indictment of Fed Chair Jerome Powell over remarks he made to Congress about a renovation project, stirring concerns about the central bank's autonomy.