FX.co ★ US 10-Year Yield Holds Advance

The yield on the US 10-year Treasury note hovered near 4.18% on Thursday, extending its rebound from the prior session as stronger-than-expected US employment data dampened expectations for imminent Federal Reserve rate cuts. Wednesday’s report showed payrolls increasing by 130,000 in January, the largest monthly gain in over a year, while the unemployment rate unexpectedly declined to 4.3%. The figures pointed to a stabilizing labor market at the start of 2026. The solid data bolstered Fed officials’ inclination to keep interest rates steady, with markets now projecting the next rate cut in July rather than June. Nevertheless, traders still expect about 50 basis points of total easing by the end of the year. Investors are now focused on Friday’s January CPI release for fresh signals on the inflation outlook.