USA: 10-Year Treasury Yield Edges Down.

The yield on the US 10-year Treasury note fell to 4.44% on Thursday, partially reversing the nearly 5bps increase recorded in the previous session, as investors digested the latest FOMC decision and assessed what new Fed Chair Kevin Warsh's leadership could mean for monetary policy and inflation. The Fed left the federal funds rate unchanged, as widely expected, but signalled that further tightening may be needed this year to contain inflationary pressures. Around half of policymakers now expect at least one rate hike in 2026, while the Fed sharply raised its forecasts for both headline and core PCE inflation this year. Despite the hawkish policy message, Warsh sought to reinforce his inflation-fighting credentials, stating that he would approach policy differently and reaffirming the central bank's commitment to restoring price stability. Markets are now fully pricing in a rate hike by October. Meanwhile, the yield on the policy-sensitive 2-year Treasury note edged up to 4.20%.