08.10.202518:45:39UTC+00US 10-Year Yield Holds Narrow Range

On Wednesday, the yield on the 10-year US Treasury note held steady at 4.1%, maintaining a tight range for the third consecutive session as the markets anticipated new developments amid a scarcity of US economic data. The ongoing government shutdown, stemming from a Congressional standoff, has halted the release of crucial economic indicators typically utilized by the markets and the Federal Reserve to assess economic conditions. Consequently, the MOVE index remained near its lowest level in four years. Despite this, the minutes from the latest FOMC meeting suggested that the Federal Reserve should proceed with rate cuts this year to address the increasing weaknesses in the labor market, as recently highlighted by consecutive declines in ADP private payrolls. Nevertheless, some committee members urged caution in easing monetary policy, citing ongoing inflation concerns. Persisting inflation fears and a depreciating dollar have prompted foreign markets to shift away from dollar-denominated assets towards precious metals. This trend coincided with a lackluster auction for the 10-year note, which pushed yields to their highest point of the session.