05.11.202504:09:28UTC+00US Treasury Yields Fall for Second Session

The yield on the US 10-year Treasury note decreased to approximately 4.07% on Wednesday, marking the second consecutive session of decline as investors gravitated towards safer assets amidst a general risk-aversion sentiment. Global equities and other risk-related assets experienced downturns due to increasing apprehensions over inflated AI valuations. Adding to the cautious mood, major bank CEOs issued warnings about potential market downturns. In the meantime, ambiguity remains surrounding a potential Federal Reserve rate cut in December, following mixed signals from policymakers regarding future easing prospects. Currently, the market estimates a 69% likelihood of a 25 basis point cut next month, a decrease from roughly 90% prior to last week's Federal Open Market Committee (FOMC) decision. The ongoing US government shutdown, now the longest on record, continues to obscure the outlook by delaying important data releases, although investors are keenly awaiting the ADP private employment report due later today. In a separate announcement, the US Treasury Department indicated plans to borrow $569 billion in the fourth quarter, $21 billion less than initially projected in July 2025, owing to a higher starting cash balance.