20.08.202518:18:46UTC+00US 10-Year Yield Inches Down

The yield on the 10-year U.S. Treasury note dipped below 4.3% on Wednesday, continuing a slight decline from the previous day as market participants evaluated the Federal Reserve's rate outlook. The minutes from the most recent FOMC meeting revealed a consensus among members that the risks favoring inflation outweigh those concerning a severe labor market slowdown. It was also noted that tariffs are expected to be inflationary, though their impact might manifest with an indeterminate delay. These insights echoed Fed Chairman Powell's comments after the July meeting, which the market perceived as hawkish. Investors are now eagerly anticipating the Chairman's keynote address in Jackson Hole, hoping for further guidance on how the FOMC intends to manage the dual challenges of inflation and labor market risks. The July meeting occurred prior to significant downward revisions to non-farm payrolls over the preceding three months and disappointing ISM PMI figures, leading markets to heavily speculate on multiple rate reductions this year. Current futures rates suggest the likelihood of two additional rate cuts in 2023.