I The 10-year US Treasury yield rose on Thursday after the Federal Reserve signaled that inflation may slow next year.
The harvest on the 10-year Treasury rose more than one point to 4.516%, after crossing 4.5% in the previous session – a visible sign of increased volatility. I Treasury for 2 years the yield fell more than two basis points to 4.331%.
Products and prices move opposite to each other. One basis point equals 0.01%.
The Fed cut interest rates by a quarter of a percentage point on Wednesday, in its third widely anticipated rate cut.
Chairman Jerome Powell hit a snag on next year’s outlook, however, raising his inflation forecast and hinting at two potential rate cuts on the horizon, down from the four noted in September.
The odds of another rate cut at the Fed’s first policy meeting of the year in January have dropped to less than 10%, according to the financial markets tracked by the CME FedWatch tool.
Investors now look ahead on Thursday to new readings on the labor and housing markets, as well as the final US gross domestic product (GDP) data for the last quarter.
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