25.02.202603:00:37UTC+00US 10-Year Yield Stabilizes on Hawkish Fed View

The yield on the 10-year US Treasury held near 4.05% on Wednesday, stabilizing after coming under pressure earlier in the week, as expectations firmed that the Federal Reserve will keep interest rates unchanged for an extended period. Fed official Susan Collins said that maintaining current rates is likely appropriate given an improving labor market and ongoing inflation risks, while Thomas Barkin stated that monetary policy is well-positioned to manage economic risks. Even so, markets are still pricing in roughly three 25-basis-point rate cuts by the Fed this year.

On the trade front, the US on Tuesday began collecting a temporary 10% global tariff that the White House is seeking to raise to 15%, following the Supreme Court’s rejection last week of Donald Trump’s proposed reciprocal tariffs. Meanwhile, in his State of the Union address, Trump highlighted his administration’s policies and economic record, asserting that the country is now stronger than ever.