The yield on the US 10-year Treasury note remained subdued around 4.14% on Thursday, holding declines from earlier in the week as investors positioned ahead of the highly anticipated November CPI report, which is expected to show that price pressures remain above the Federal Reserve’s target. Mixed labor market data for November, released earlier in the week, had little impact on market expectations, with investors still pricing in at least one Fed rate cut next year. Comments from Federal Reserve officials added further nuance, with Fed Governor Christopher Waller, a candidate for the central bank’s chair, noting there remains room to cut rates amid signs of a softening job market. In contrast, Atlanta Fed President Raphael Bostic expressed a more cautious view, indicating he does not expect further reductions in borrowing costs in 2026.
