04.11.202504:24:44UTC+00US 10-Year Yield Holds at 3-Week High

The yield on the US 10-year Treasury note remained at its highest level in three weeks, approximately 4.1%, as of Tuesday. This stability is due to Federal Reserve officials signaling a measured approach to potential future interest rate reductions. Fed Governor Lisa Cook pointed out the increasing risks within the labor market but did not go as far as endorsing a rate cut in December. Meanwhile, Chicago Fed President Austan Goolsbee emphasized his ongoing concern about inflation. These comments come on the heels of last week's interest rate cut, which was accompanied by a cautionary statement from Fed Chair Jerome Powell, suggesting that a further reduction in December is not guaranteed. Market sentiment now reflects around a 65% probability of an additional cut next month, a decrease from the previous week's 94% prediction. In addition, the latest ISM Manufacturing PMI indicated a more pronounced contraction and a moderation in price pressures. Investors are now turning their attention to the upcoming ADP employment report and Challenger job cuts data for further insights into labor market dynamics.