The yield on the 10-year US Treasury note traded around 4.1% on Friday, holding its recent decline amid solid expectations of further Federal Reserve rate cuts. Markets are almost fully pricing in a 25 basis point reduction this month, with another move anticipated by December. On the political front, the government shutdown has so far shown limited immediate economic impact, though it heightened concerns over fiscal uncertainty, inflation risks and labor market softness. Treasury Secretary Scott Bessent warned Thursday that the funding lapse could weigh on GDP growth, while President Donald Trump threatened sweeping federal layoffs to pressure Democrats. The shutdown has also caused a data blackout, with the Labor Department postponing Friday’s release of the September nonfarm payrolls report.