As the year draws to a close, trading activity has turned subdued, with U.S. Treasury yields edging lower. Market attention is fixed on the Federal Reserve's meeting minutes set to be released on Tuesday, as investors hope to glean clues about the magnitude and timeline of further interest rate cuts in 2026. The softness in the U.S. labor market appears to suggest that interest rates may have room for further reductions, yet investors have also taken note of the recent stronger-than-expected third-quarter GDP figures. Data from the London Stock Exchange shows that the U.S. money market has currently priced in at least two rate cuts for 2026, with the first potential cut likely to come in April or June. Separately, data from Tradeweb reveals that the 10-year Treasury yield has dropped by 2 basis points to 4.115%, marking a notable decline from around 4.571% at the start of 2025.
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