US 10-Year Yield Steadies as Fed Outlook Mulled

The 10-year US Treasury yield hovered near 4.07% on Thursday after rising about 5 basis points in the prior session, as investors digested the Federal Reserve’s policy outlook. On Wednesday, the Fed delivered a widely expected quarter-point cut, while signaling two more reductions this year but only one in 2026, pushing back against forecasts for two or three cuts next year. Chair Jerome Powell struck a cautious note, framing the move as “risk management” in response to labor market softness, while stressing there is no urgency to accelerate easing. Notably, newly appointed Governor Stephen Miran was the sole dissenter, favoring a larger 50 bps cut, leading to fewer splits than anticipated.