The yield on the 10-year US Treasury edged lower to around 4.14%, as holiday-thinned trading continued and markets priced in rate cuts next year. Investors continue to expect two reductions in 2026, though Federal Reserve officials are divided, with most projecting only one. Recent GDP data also showed a robust annualized pace in Q3, reinforcing confidence in growth and tempering expectations for rapid Fed easing. Attention is also turning to the selection of the next Fed Chair, as President Trump plans to name Powell’s successor in early 2026, a decision that could shape the central bank’s policy direction. Meanwhile, traders await Tuesday’s release of the FOMC minutes for additional clues on the future path of interest rates.
