US 10-Year Yield Steady Ahead of Fed Minutes

The 10-year US Treasury yield held near 4.31% on Wednesday as investors awaited the Federal Reserve’s July meeting minutes for clues on the policy outlook. The meeting was notable for being the first since 1993 with two dissenting votes, as Fed governors Christopher Waller and Michelle Bowman favored a quarter-point rate cut over keeping rates unchanged. Markets will also turn to Fed Chair Jerome Powell’s speech at the Jackson Hole symposium for further guidance, particularly on whether the Fed may push back against expectations for easing. Traders are currently pricing in an 85% chance of a September rate cut and about 54 basis points of reductions by year-end. Investors will also assess corporate earnings from major US retailers to gauge the strength of consumers.