The yield on the US 10-year Treasury note remained above 4.1% on Friday after a sharp rise in the prior session, as investors scaled back expectations for a Federal Reserve rate cut in December. Markets now assign about a 50% chance of a 25 bps cut next month, down sharply from over 95% a month ago. The move comes amid uncertainty over inflation and differing views among Fed policymakers on the economic and monetary outlook. The US government reopened this week, allowing a backlog of economic reports to be released, though the White House noted that some October data may never be published due to agencies being unable to collect it during the shutdown. Concerns also grew that upcoming reports could reveal a potential economic slowdown. The Treasury selloff coincided with declines in US stocks and the dollar, reflecting weakening confidence in American assets amid heightened uncertainty.
