US 10-Year Yield Holds Decline on Powell Comments

The yield on the 10-year US Treasury note held near 4.27% on Monday, steady after falling nearly 10 basis points in the previous session following Federal Reserve Chair Jerome Powell’s Jackson Hole remarks signaling the likelihood of a rate cut at the central bank’s next meeting. Powell emphasized that while unemployment remains low, risks to the labor market are building and monetary policy is still “restrictive,” suggesting that adjustments may be warranted. He also cited changes in tax, trade, and immigration policies as factors reshaping the economic outlook. Markets are now pricing in an 87% probability of a 25 basis point rate cut in September, up from around 75% at some point last week. Investors will turn their attention to Friday’s release of the July personal consumption expenditures price index, the Fed’s preferred inflation gauge, for additional policy cues.