28.08.202513:43:57UTC+00US 10-Year Yield Hovers at 2-Week Low

On Thursday, the yield on the 10-year U.S. Treasury note remained below 4.25%, its lowest point in two weeks, as market participants evaluated the extent of rate cuts anticipated from the Federal Reserve this year. The dip in yields was predominantly driven by shorter maturities, reflecting the market's anticipation of several Fed rate cuts, prompted by concerns over the labor market. However, longer-term yields were bolstered by ongoing anxieties about persistent inflation and the White House's attempts to sway the Federal Open Market Committee (FOMC). In an unusual development, Fed Governor Lisa Cook initiated legal action against President Trump, following his attempt to remove her from her position at the central bank. Meanwhile, Trump persisted in his calls for reduced interest rates. Additionally, leading economic indicators suggest an acceleration in services inflation, ahead of upcoming Personal Consumption Expenditures (PCE) inflation data set to be released tomorrow.