US 10-Year Yield Steadies as Fed Holds Rates

The yield on the 10-year US Treasury note hovered around 4.36% on Thursday, stabilizing after volatile moves earlier in the week. The Federal Reserve held interest rates steady as expected, with Chair Jerome Powell reiterating it remains too early to consider rate cuts and offering little guidance on when easing might begin. In response, markets scaled back expectations for rate cuts this year, now pricing in just 35 basis points of easing by December. Investors also absorbed stronger-than-expected economic data, including solid second-quarter GDP growth and robust private employment figures. Attention now turns to upcoming PCE inflation and jobless claims data on Thursday, followed by the July jobs report on Friday for further policy clues. Meanwhile, the Treasury maintained issuance volumes for notes and bonds, but noted it will increase the volume of long-end nominal buybacks and more TIPS buybacks, limiting supply of longer maturity instruments.