Investors watch the 10-year US Treasury yield with the Fed’s upcoming decision and Trump’s policy impact.
The yield on the 10-year US Treasury note remained steady at around 4.43% on Thursday, close to a four-month high, as investors awaited the Federal Reserve's policy decision. The Fed is expected to announce a 25 basis point rate cut later today, with traders watching for indications of another potential cut in December.
On Wednesday, the benchmark yield surged by 20 basis points following Donald Trump's decisive victory in the US presidential election. Republicans also regained control of the Senate, opening the door to significant legislative changes, while control of the House remains uncertain. Trump's proposed policies, including restricting illegal immigration, raising tariffs, cutting taxes, and deregulation, are predicted to drive growth and reduce inflation. Expectations of increased government spending and debt also contributed to the rise in Treasury yields.
Bond Market Pushback Takes Center StageMarkets are almost fully pricing in another Federal Reserve rate cut this week, yet the US bond market continues to move in the opposite direction.
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Central Bank Expectations Reset the Tone (8-12 December)Traders adjusted positioning before the Federal Reserve’s December decision and evaluated fresh signals from the ECB, BoE and BOJ.
Detail Futures Stall, 10-Year Yield Pushes Above 4.1% (12.08.2025)US stock futures were flat on Monday ahead of the Fed’s meeting, with markets pricing an 88% chance of a 25 bp cut on Wednesday.
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