The yield on the US 10-year Treasury note steadied around 4.24% on Wednesday after rising in the previous session, as investors awaited the Federal Reserve’s widely expected decision to hold interest rates steady. Traders will focus on any guidance regarding the timing of the next rate cut, amid expectations for two quarter-point reductions before year end. Speculation also swirled that President Trump could announce a new Fed chair this week who will likely support his preference for more aggressive policy easing. Meanwhile, markets grappled with fears of another government shutdown after Democratic leaders threatened to block a $1.2 trillion funding package if it includes extra allocations for Homeland Security. Elsewhere, the dollar slid to four-year lows following Trump’s remarks that he is not concerned about its recent decline, signaling the administration’s comfort with a weaker greenback to support exports.
