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US 10-Year Yield Steadies as Fed Outlook Mulled

· Exchange,Top Post

The yield on the US 10-year Treasury note stabilized around 4.44% on Wednesday after losing some ground in the previous session as investors reacted to stronger-than-expected jobs data and the latest remarks from Federal Reserve Chair Jerome Powell. The JOLTS report released Tuesday showed job openings increased by 221,000 to 8.140 million in May, beating the forecast of 7.91 million. Meanwhile, Powell said that recent data indicated a potential shift to a disinflationary trend, although they need more confidence on the inflation outlook before cutting interest rates. Investors now look ahead to the latest FOMC minutes and more jobs data on Wednesday, as well as the nonfarm payrolls report on Friday for further guidance. Elsewhere, rising odds of a second Donald Trump presidency continued to support Treasury yields, which is seen as inflationary due to tax cuts, tighter immigration policy and higher tariffs on imports.

 

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