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.
Inflation and interest rate expectations took center stage as surging energy costs and stronger U.S. producer prices reshaped the policy outlook. The dollar index held above 99 as surprisingly hotter U.S. producer inflation pushed Fed rate hike odds to 71%.
Detail
US Producer Inflation AcceleratesUS producer prices rose 0.4% month-on-month in August, following a revised 0.1% increase in July. The reading matched market expectations and marked the strongest monthly increase in three years.
Detail Euro Gains Ahead of ECB Decision (09.10.2026)Monetary policy expectations remained the main driver on Thursday, with the euro advancing toward 1.1640 ahead of a widely anticipated ECB rate hike.
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