FX.co ★ US 10-Year Yield Holds Advance

The yield on the US 10-year Treasury note remained steady around 4.16% on Tuesday, following a two-day increase. This came as investors weighed the economic consequences of the ongoing government shutdown and kept an eye on political developments in Japan and France. The shutdown has now stretched into its seventh day, following failed funding proposals from both Democrats and Republicans in the Senate, resulting in a lack of pivotal economic data crucial for informing the rate outlook. Simultaneously, traders are anticipating upcoming comments from Federal Reserve officials, as well as the Federal Open Market Committee's (FOMC) September meeting minutes. The market is almost fully expecting a quarter-point rate cut by the Federal Reserve this month, with another cut anticipated in December. Meanwhile, Treasury yields mirrored the rising bond yields in Japan and Europe, driven by political events such as the appointment of a new leader by Japan's ruling party and the resignation of the French government, which have contributed to political uncertainty.