FX.co ★ US 10-Year Yield Muted Ahead of Fed Decision

The yield on the US 10-year Treasury note remained relatively stable at approximately 3.98% on Wednesday, as investors anticipated the Federal Reserve’s upcoming policy announcement. The consensus among market participants is the expectation of a quarter-point rate reduction. Attention will be directed towards remarks from Chair Jerome Powell for insights into the pace of potential future rate cuts, with an additional reduction anticipated in December already accounted for in market strategies. Concurrently, the prolonged US government shutdown has entered its fifth week, resulting in delays of critical economic data releases that are essential for informing monetary policy and shaping market expectations. Furthermore, investors are keenly observing the forthcoming meeting between US President Donald Trump and Chinese President Xi Jinping on Thursday, where it is expected they will finalize a framework that could prevent scheduled US tariff hikes and China’s restrictions on rare earth exports.