18.12.202503:35:15UTC+00US 10-Year Yield Muted Ahead of CPI Report

The yield on the U.S. 10-year Treasury note remained steady at approximately 4.14% on Thursday, reflecting earlier declines this week. Investors are attentively anticipating the November Consumer Price Index (CPI) report, widely expected to reveal that inflation pressures continue to exceed the Federal Reserve's target. Despite receiving mixed labor market data for November earlier this week, market expectations remained largely unaffected, with investors still anticipating at least one interest rate cut from the Fed next year. Remarks from Federal Reserve officials provided additional context: Fed Governor Christopher Waller, a contender for the central bank's chair, indicated there is potential to lower rates given signals of a softening job market. Conversely, Atlanta Fed President Raphael Bostic offered a more cautious outlook, suggesting he does not foresee borrowing costs being reduced further in 2026.