They yield on the 10-year US Treasury note was below 4.05% on Tuesday, remaining near the lowest in five months as markets assessed the rate outlook by the Federal Reserve ahead of their policy decision tomorrow. Mounting evidence of a deteriorating labor market in the last two payroll reports drove FOMC members to signal a 25bps rate cut, while the Summary of Economic Projections will give hints on how the FOMC balances risks of stubborn inflation against increasing unemployment. Markets currently expect three cuts this year. Despite softening in labor conditions, expenditure indices remained robust. Retail sales rose by 0.6% in August while the control group index, which has a large impact on the US GDP, surged by 0.7% to record the fourth straight month of growth. High inflation also limited the magnitude of rate cuts expected next year. The headline CPI rose at a faster pace and import prices unexpectedly rose in August, signaling a potential pro-inflationary impact from tariffs.