US 10-year yield holds near 4.2% ahead of inflation data

The yield on the US 10-year Treasury stayed near 4.2% on Tuesday, following an increase in the previous session, as investors awaited key inflation data later this week that could shape Federal Reserve policy expectations.

US 10-year yield holds near 4.2% ahead of inflation data

On Monday, data revealed that US inflation expectations for the year ahead rose slightly to 3% in November, up from 2.9% in October, indicating ongoing concerns about persistent price pressures. Stronger-than-expected job gains for November were reported last week, although the unemployment rate peaked at 4.2%. Despite these mixed signals, markets are pricing in an 86% chance of a 25 basis point rate cut by the Fed this month, though the outlook for 2025 remains uncertain.

Central Bank decisions spark global market uncertainty

Investors are also closely watching upcoming monetary policy decisions from central banks in Australia, Canada, and Switzerland, which could add further volatility to global markets.