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The yield on the US 10-year Treasury note ticked up to 4.14% on Thursday, marking a slight increase following modest declines over the preceding two days. Investors remained cautious, eagerly awaiting new developments, as the release of federal economic data is on hold due to the ongoing government shutdown. Additionally, the latest Federal Open Market Committee (FOMC) minutes did little to alter expectations regarding the Federal Reserve’s policy direction for this year. Currently, the market is factoring in two further 25-basis-point rate cuts by the Fed this year. This sentiment comes in response to the minutes, which reveal that policymakers are carefully balancing the potential downside risks to employment with ongoing inflationary pressures. On Wednesday, the Senate once again dismissed funding proposals put forth by both Republican and Democratic legislators that could have facilitated an end to the shutdown. At the same time, the Treasury Department observed lukewarm interest in its auction of 10-year notes.
