The yield on the 10-year US Treasury hovered around 4.11% on Tuesday, its lowest level in over three weeks, as traders awaited the release of the FOMC minutes for further insight into the policy outlook. Market pricing currently implies two rate cuts in 2026, although policymakers remain divided on the path ahead, with most projecting only one reduction. Attention is also turning to the selection of the next Fed Chair, with President Trump expected to announce Jerome Powell’s successor early next year, a decision that could influence expectations for future monetary policy. Meanwhile, data released on Monday showed that pending home sales rose 3.3% in November, surpassing forecasts of a 1% increase, suggesting improving housing demand amid easing mortgage rates. However, the Dallas Fed December manufacturing survey indicated weaker business conditions in Texas, with negative readings in many indicators.
