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.
A deepening sell-off in technology and artificial intelligence stocks pressured financial markets, forcing investors to liquidate precious metals holdings to cover losses elsewhere.
Escalating Middle East tensions pushed oil prices higher following a deadly drone strike on Saudi Aramco's Shaybah facility, renewing inflation concerns and expectations for further Federal Reserve tightening.
Rising oil prices renewed inflation concerns as uncertainty surrounding the US-Iran conflict and continued disruptions in the Strait of Hormuz reinforced expectations for further monetary tightening.
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