US 10-Year Yield Holds Decline Ahead of Fed

The yield on the 10-year US Treasury note held around 4.33% on Wednesday following a sharp drop in the previous session, as investors adopted a cautious stance ahead of the Federal Reserve’s policy announcement. The Fed is widely expected to keep rates unchanged, but market participants are focused on any guidance suggesting a potential rate cut in September. President Donald Trump has continued to pressure the Fed to lower borrowing costs. Fed Governors Christopher Waller and Michelle Bowman, both seen as contenders to lead the central bank, are expected to dissent at this month’s meeting. Investors are also eyeing upcoming economic data, including private payrolls, GDP, and pending home sales, to further assess the health of the economy. Meanwhile, trade uncertainty persisted after US-China talks in Stockholm ended Tuesday without a deal to extend the current truce. Treasury Secretary Scott Bessent said any agreement would require Trump’s final approval.