10-year treasury yield steady at 4.3% amid election, Fed moves

The yield on the 10-year U.S. Treasury note held steady at around 4.3% on Tuesday, continuing its recent decline as traders pulled back from “Trump trades” due to growing uncertainty around the upcoming U.S. presidential election.

10-year treasury yield steady at 4.3% amid election, Fed moves

Polls now show a closer race between Kamala Harris and Donald Trump than previously anticipated, fueling market focus on potential shifts in tax and spending policies depending on which party gains control of Congress. A congressional sweep could pave the way for sweeping changes, particularly in fiscal policy, impacting sectors from infrastructure to healthcare. On the monetary policy front, the Federal Reserve is expected to announce a cautious 25-basis-point rate cut on Thursday, considering persistent inflation risks against a moderating labor market.

Fed balances inflation and cooling jobs, markets eye December rate cut

This decision reflects the Fed’s balancing act: inflation pressures remain high, but recent job market data suggests some cooling, complicating the path forward. Markets are also pricing in the likelihood of another quarter-point cut in December as investors look for signs of economic resilience amid global uncertainty and domestic policy shifts.