10.09.202502:47:33UTC+00US 10-Year Yield Steadies Ahead of Inflation Data

The yield on the 10-year US Treasury note remained around 4.08% on Wednesday, following a dip to a five-month low earlier in the week. This comes as investors anticipate crucial inflation data that could impact the Federal Reserve's policy decisions. Today, attention turns to the release of the producer price index, with the consumer price index set to follow on Thursday. On Tuesday, the Bureau of Labor Statistics reported that the economy may have produced 911,000 fewer jobs over the 12 months ending in March, averaging about 76,000 fewer jobs per month than previously estimated. This suggests a weaker labor market. Coupled with the underwhelming August employment report from last week, these figures have strengthened the forecast for a 25 basis point rate cut by the Federal Reserve next week. However, some market participants still speculate on a more substantial 50 basis point reduction. Overall, the market anticipates a total of 66 basis points in rate cuts throughout the year.