The yield on the US 10-year Treasury note stabilized around 4.16% on Friday after facing heightened volatility earlier in the week, as investors digested the latest Federal Reserve policy decision and outlook. On Wednesday, the Fed cut interest rates as expected and delivered a less hawkish outlook than markets anticipated. Chair Jerome Powell indicated that further rate hikes are unlikely, with projections pointing to one additional cut next year and another in 2027. The central bank also announced it would begin purchasing $40 billion in short-dated Treasuries on Friday, just weeks after ending its balance-sheet runoff, a move aimed at easing upward pressure on borrowing costs.
