06.01.202615:42:39UTC+00US 10-Year Treasury Yield Little Changed

The yield on the US 10-year Treasury note remained stable at 4.18% on Tuesday, just beneath the four-month peak of 4.19% reached last Friday. Investors are currently evaluating geopolitical events in Venezuela, while simultaneously focusing on a series of crucial economic data points. These provide deeper insights into the US economy's condition and help shape projections for the Federal Reserve's policy direction. Recent figures indicate a deceleration in economic momentum: the ISM Manufacturing PMI fell short of expectations, reflecting the most significant contraction in the manufacturing sector since 2024, and the S&P Global Services PMI was adjusted downward, highlighting further sectoral weakness. Richmond Fed President Barkin emphasized that future monetary policy will necessitate "finely tuned judgments," and Governor Miran projected that the US central bank will need to reduce interest rates by over 50 basis points in 2026. Currently, money markets are anticipating two quarter-point interest rate cuts by the Fed this year.