US 10-Year Yield Holds Advance

The yield on the 10-year US Treasury hovered near 4.11% on Friday after climbing almost 10 basis points over the past two sessions, as the Federal Reserve signaled a less dovish stance than markets expected. Earlier this week, the Fed delivered a widely anticipated quarter-point cut and projected two more reductions this year, while flagging just one cut in 2026. Fed Chair Jerome Powell characterized the move as a risk management step in response to labor market weakness, emphasizing there was no need to accelerate easing. Data on Thursday also showed weekly jobless claims fell, reversing the prior week’s spike. At the same time, the Fed maintained the pace of quantitative tightening despite the sharp drawdown in its overnight reverse repo facility since the last meeting.