US 10-Year Treasury Yield Up to 4.9%
The yield on the US 10-year Treasury note edged higher to 4.9% on Thursday, recovering slightly after falling around 8bps in the previous session. The decline followed the Democratic sweep of Congress in the US midterm elections, which eased some political uncertainty and raised expectations of lower federal spending, tax cuts and a potential diplomatic resolution to the conflict with Iran. Meanwhile, investors are looking ahead to Friday's jobs report for further insight into the health of the US labour market. Recent data showed that private businesses added 86,000 jobs in October, according to the ADP report, while initial jobless claims fell to their lowest level in 57 years. Additionally, third-quarter productivity growth came in stronger than expected. Against this backdrop, markets are pricing in an approximately 83% probability of a 25bps Fed rate hike next month, with a further increase also anticipated in 2027.
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The yield on the US 10-year Treasury note edged higher to 4.9% on Thursday, recovering slightly after falling around 8bps in the previous session. The decline followed the Democratic sweep of Congress in the US midterm elections, which eased some political uncertainty and raised expectations of lower federal spending, tax cuts and a potential diplomatic resolution to the conflict with Iran. Meanwhile, investors are looking ahead to Friday's jobs report for further insight into the health of the US labour market.
Recent data showed that private businesses added 86,000 jobs in October, according to the ADP report, while initial jobless claims fell to their lowest level in 57 years. Additionally, third-quarter productivity growth came in stronger than expected. Against this backdrop, markets are pricing in an approximately 83% probability of a 25bps Fed rate hike next month, with a further increase also anticipated in 2027.