US 10-Year Yield Steadies Ahead of Fed Decision

The 10-year US Treasury yield held around 4.03% on Wednesday, hovering near five-month lows as markets awaited the Federal Reserve’s policy decision. The Fed is widely expected to deliver a quarter-point cut later in the day, with traders pricing in about 67 basis points of easing by year-end. Those expectations have been reinforced by signs of a cooling labor market, even as inflation remains above the Fed’s 2% target. Investors will also focus on the central bank’s quarterly Summary of Economic Projections, particularly the “dot plot” outlook for rates. On the data front, US retail sales rose in August for a third straight month, posting broad-based gains that capped a resilient summer of consumer spending.