US 10-Year Yield Inches Upward

2025-12-04 12:50 By Andre Joaquim 1 min. read

The yield on the 10-year US Treasury note was at the 4.08% mark on Thursday, erasing the pullback from the prior session as markets continued to gauge the Federal Reserve's rate outlook for the upcoming year.

A batch of week labor data consolidated bets that the Fed will reduce rates by 25bps next week, headlined by an unexpected decline in payrolls measured by the ADP, while job cuts tracked in the Challenger report rose 25% on the year.

Still, yields were supported by lingering concerns that inflation may prevent the Fed from delivering multiple rate cuts next year.

Feedback solicited by the Treasury showed market players expressed concerns that the new Fed Chair that would overdo rate cuts to please President Trump.

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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