US 10-Year Yield Hits 2-Week Low

The yield on the 10-year US Treasury fell below 4.23% on Thursday, marking a two-week low as traders boosted bets on Federal Reserve rate cuts. Markets now see an 89% chance of a 25 basis point cut in September, up from 82% a week earlier. The shift came as President Donald Trump sought to expand his influence over the central bank by attempting to remove Fed Governor Lisa Cook and replace her with a more dovish candidate. Adding to the dovish outlook, New York Fed President John Williams said Wednesday that a rate reduction was under consideration. Investors are now awaiting Friday’s PCE price index — the Fed’s preferred inflation gauge — for additional signals, while next week’s monthly payrolls report will provide a fresh read on labor market strength.