The yield on the 10-year US Treasury note held above 4% on Monday after rebounding in the prior session, as sentiment toward the regional banking sector stabilized following brief credit concerns. Signs of easing US-China trade tensions also lent support, with President Donald Trump noting that his proposed 100% retaliatory tariffs on Chinese goods would be unsustainable. Investors now await the September CPI report due Friday, expected to show inflation remains elevated, with traders closely watching given the ongoing data blackout from the government shutdown. On the monetary policy front, the Federal Reserve is widely expected to cut rates by 25 basis points next week, followed by another move in December and possibly three more in 2026, amid growing labor market risks and subdued inflation pressures despite tariff-related uncertainty.
