US 10-Year Yield Holds at 3-Week High
The yield on the US 10-year Treasury note held at three-week highs around 4.1% on Tuesday as Federal Reserve officials signaled a cautious approach to further interest rate cuts. Fed Governor Lisa Cook acknowledged increasing labor market risks but stopped short of supporting a December cut, while Chicago Fed President Austan Goolsbee said inflation remains his main concern. Their remarks followed last week’s rate cut, after which Fed Chair Jerome Powell warned that another move in December is not assured. Markets now see about a 65% chance of another cut next month, down from 94% a week earlier. Meanwhile, the latest ISM Manufacturing PMI showed a deeper-than-expected contraction and cooling price pressures. Investors now look to the ADP employment and Challenger job cuts reports for further insight into labor market conditions.
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