US 10-Year Yield Hits 2-Week Low
The yield on the 10-year US Treasury dipped below 4.23% on Thursday, reaching its lowest point in two weeks, as traders increased their expectations for upcoming rate cuts by the Federal Reserve. There is now an 89% probability of a 25 basis point rate cut in September, up from 82% recorded the previous week. This development coincided with President Donald Trump's efforts to extend his influence over the Federal Reserve by seeking to remove Fed Governor Lisa Cook, with the intention of appointing a more dovish successor. Contributing to the dovish sentiment, John Williams, President of the New York Federal Reserve, indicated on Wednesday that a rate reduction was under consideration. Investors are now looking to Friday’s PCE price index—regarded as the Fed's preferred measure of inflation—for further indications, while the upcoming monthly payroll report next week will provide an updated assessment of the labor market's health.
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