US 10-Year Yield Holds Above 4.2%

2026-03-18 18:25 By Andre Joaquim 1 min. read

The yield on the 10-year US Treasury note remained above the 4.2% mark on Wednesday, trimming its two-session pullback and holding most of its surge since the start of March amid signs that the FOMC is heeding to inflationary risks to the US economy.

The Federal Reserve held its rates unchanged, as expected, but policymakers raised their projections of both core and headline inflation, in addition to an improved outlook in GDP growth.

Pro-inflationary risks were magnified by a hot PPI reading for February and more increases in energy prices following attacks on Iranian energy infrastructure.

Likewise, a greater share of FOMC members signaled that no rate cuts are required this year in their baseline scenario, although concerns of a softening labor market drove other members to opt for an outlook of more accommodative policy.

Rate traders remained split between one and two rate cuts this year.



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US 10-Year Yield Holds Above 4.2%
The yield on the 10-year US Treasury note remained above the 4.2% mark on Wednesday, trimming its two-session pullback and holding most of its surge since the start of March amid signs that the FOMC is heeding to inflationary risks to the US economy. The Federal Reserve held its rates unchanged, as expected, but policymakers raised their projections of both core and headline inflation, in addition to an improved outlook in GDP growth. Pro-inflationary risks were magnified by a hot PPI reading for February and more increases in energy prices following attacks on Iranian energy infrastructure. Likewise, a greater share of FOMC members signaled that no rate cuts are required this year in their baseline scenario, although concerns of a softening labor market drove other members to opt for an outlook of more accommodative policy. Rate traders remained split between one and two rate cuts this year.
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