US 10-Year Yield Steady Ahead of Fed Decision and Key Data

The yield on the 10-year US Treasury note held near 4.39% on Monday, marking a third consecutive session of subdued movement as investors looked ahead to a pivotal week for monetary policy and economic data. The Federal Reserve is widely expected to leave interest rates unchanged on Wednesday, but markets will closely watch for signals about a potential rate cut in September. Attention will also turn to the latest Personal Consumption Expenditures report, considered the Fed’s preferred inflation gauge, for insight into how tariffs are influencing price dynamics. In addition, a raft of labor market data is due this week, culminating with Friday’s closely watched monthly jobs report. Meanwhile, trade developments also remained in focus after the US and European Union reached an agreement over the weekend. The deal imposes a 15% tariff on most EU exports, half the 30% previously threatened, helping ease broader trade uncertainty.