10-Year T-Note futures declined after hawkish Fed minutes. 2/18/26

10-Year T-Note futures experienced selling pressure for a second consecutive session, trading down to the 112'290 handle. This move follows a period where futures reached their highest levels since late November. The market was influenced by stronger than expected manufacturing and industrial production data early in the session. Furthermore, the release of the Federal Reserve minutes revealed a hawkish tone among several officials, particularly regarding persistent inflation risks. In response, the 10-Year yield rose 4 bps to 4.09%, moving off recent two-month lows. The yield curve also showed signs of steepening, as selling pressure was more pronounced on the back end. Yields on the front end of the curve rose between 2 and 2.5 bps, while back-end yields advanced between 3.5 and 4 bps. Traders continue to adjust positions as the market reacts to robust economic data and the central bank's policy outlook.

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