10-Year Treasury Note yield dips below 4%, closes higher after FOMC.

Following the Federal Open Market Committee meeting, the 10-Year Treasury Note futures saw significant movement. The market initially reacted to the expected 25 basis point rate cut by sending yields below 4% for the first time since April, but they reversed course during the press conference. The rally in yields was influenced by the Fed's acknowledgement of inflation concerns, despite also noting a weaker labor market. This created a tug-of-war effect, with yields ultimately closing higher at 4.072%. Volatility, as measured by the Cboe Volatility Index, decreased after the event, which is a typical market reaction. The market is now pricing in additional rate cuts in 2025, and traders will be looking to tomorrow's claims numbers for more insight into the job market.