US 10-Year Yield Pulls Back

2025-12-03 13:51 By Andre Joaquim 1 min. read

The yield on the 10-year US Treasury note fell to the 4.05% mark Wednesday, trimming the rebound from the previous week as mounting evidence of a weaker domestic labor market supported the outlook of lower rates.

New data from the ADP unexpectedly reflected a 32,000 drop in private payrolls in November, the third drop in four months, amid the lowest magnitude of hiring since 2023.

The data aligned with calls for a rate cut by key members of the FOMC, droving markets to consolidate bets of a final 25bps reduction in Fed interest rates at the year's final decision.

Expectations that White House economic adviser Kevin Hassett could be nominated as the next Fed chair added to the dovish sentiment.

In turn, the turn of December officially marked the end of the Fed's quantitative tightening program, but primary dealers signaled their expectations that the Fed may increase the magnitude of short-term bill purchases to prevent stress in the funding markets.



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