US 10-Year Yield Hovers at Over 2-Month Low

2026-02-17 15:24 By Andre Joaquim 1 min. read

The yield on the 10-year US Treasury note remained below the 4.05% threshold on Tuesday, the lowest in over two months, amid an uncertain outlook for riskier assets and consolidated expectations that the Federal Reserve will deliver multiple rate cuts this year.

The latest inflation data showed that headline price growth was slightly below expectations, paving the way for the US central to restart its campaign to loosen monetary conditions by the second half of the year.

Demand for bonds was also supported by selling in riskier sectors of the equity market with higher valuation estimates as the uncertain over AI disruption in the US economy drove markets to pivot toward speculative positions.

Still, uncertainty prevailed over potential overhauls to the Fed's balance sheet ahead of Kevin Warsh's Chairmanship in May.

The incoming Chair has previously advocated against asset buying, but recently signaled willingness to coordinate measures with the Treasury to ease yields.



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