US 10-Year Yield Holds Rebound

2025-09-26 09:50 By Andre Joaquim 1 min. read

The yield on the 10-year US Treasury note was at 4.18% on Friday, extending the rebound from the five-month low of 4% last week as strong economic data reduced the urgency for more rate cuts by the Federal Reserve.

The US GDP was revised higher, while durable goods orders unexpectedly rose and initial unemployment claims fell two-month low.

The data pushed against concerns of a rapid deterioration in the labor market, which previously drove FOMC members to cite the need for additional rate cuts.

Rate futures showed that investors were still in consensus that the Fed will deliver a 25bps rate cut next month, but over one third of the market has positioned for a hold in December.

Softer expectations of cuts by the Fed drove yields in shorter notes to rise more than those in longer bonds, trimming the yield steepening from this quarter.

Investors now await insights on personal income and outlays and assess risks around a Federal Government shutdown amid fresh impasses from Congress.



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