The Federal Reserve cut interest rates as expected, leading to a rally in stocks and bonds. Keep an eye on the 10-year Treasury yield for investor expectations. The bond market also reflects views on President Trump’s economy, with Treasury Secretary Bessent highlighting the 10-year yield as a key indicator.

Investors were puzzled by the 10-year yield’s behavior leading up to the rate cut. Factors included expectations of rate cut pace, potential appointment of Kevin Hassett as Fed Chair, and rising global bond yields. Despite expectations, the 10-year yield fell slightly after the Fed’s rate cut and hawkish tone.

Market uncertainty persists as inflation concerns and economic data could impact future rate-cut decisions. Disagreements within the Fed could lead to volatility ahead. Stay informed and watch the 10-year yield for investment signals in this evolving economic landscape.

Read more at Yahoo Finance: The Fed’s rate cut made everyone happy. This under-the-radar sign will show when investors are getting restless again.