Post #15488

US 10-Year Yields Stabilize The US 10-year yield has stabilized near 4.16% after a volatile week as markets digested the Fed decision and forward guidance. The Fed delivered the expected rate cut, but the bigger takeaway was a less hawkish outlook than many were positioned for. Powell made it clear that rate hikes are off the table, with projections pointing to one more cut next year and another in 2027. On top of that, the Fed announced $40B in short-dated Treasury purchases, coming just weeks after ending balance-sheet runoff — a clear move to ease upward pressure on yields and borrowing costs. Why this matters: Higher yields tend to support the dollar. Lower yields typically weaken it. With yields cooling, the macro bias leans toward a softer USD, unless rates reprice higher again. - Alan