1055 GMT - U.S. Treasury yields decline slightly in European trade as investors remain cautious despite a visibly calmer pattern compared to previous days. Attention now turns to U.S. GDP at 1330 GMT and PCE inflation at 1500 GMT, which are likely to drive near-term volatility in both forex markets and bond yields, XTB MENA's Milad Azar says in a note. "Signs of softer growth or contained inflation would reinforce expectations of a more accommodative Federal Reserve stance later this year," the market analyst says. Markets continue to see rates on hold in January, followed by roughly two rate cuts by year-end, Azar says. The two-year Treasury yield falls 0.6 basis points to 3.589%, while the 10-year Treasury yield is down 1.2bps at 4.240%, according to Tradeweb. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
January 22, 2026 05:55 ET (10:55 GMT)
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