The yield on the US 10-year Treasury note steadied around 4.22% on Tuesday after declining in recent sessions, as investors prepared for the Federal Reserve’s upcoming policy decision, where rates are widely expected to remain unchanged. However, the meeting is being overshadowed by concerns about the Fed’s independence and speculation that President Donald Trump may announce a new Fed chair this week. Markets also contended with growing fears of another government shutdown after Democratic leaders threatened to block a $1.2 trillion funding package if it includes additional allocations for Homeland Security. Meanwhile, ongoing geopolitical and trade uncertainties reinforced the so-called “sell America” trade, keeping Treasury yields supported.
