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

The yield on the US 10-year Treasury note stabilized around 3.98% on Tuesday after experiencing some volatility earlier in the week. This steadiness comes as investors eagerly await the Federal Reserve's much-anticipated policy meeting. It is widely anticipated that the central bank will reduce interest rates by 25 basis points on Wednesday, following the release of lower-than-expected inflation data for September last week. Additionally, market participants are keenly observing for any guidance regarding a possible interest rate reduction in December, as well as any indications that the central bank might be considering scaling back its quantitative tightening program. On the international trade scene, President Donald Trump and Chinese President Xi Jinping are expected to finalize a potential trade deal during their meeting this week. The agreement is expected to address various issues, including the trade of rare earth minerals, soybean purchases, and the social media platform TikTok.