The 10-Year Treasury Yield (TNX) is expected to stabilize as bond market anxiety eases following a benign December CPI report, according to Citi's latest analysis. The report suggests that rates may continue to trend lower into the month's end, with upcoming FOMC and PCE releases likely to be favorable for rates. Citi analysts highlight that the 10-year yield, which recently peaked at 4.8%, is anticipated to trade within a 4% to 4.75% range in the near term. "For 10s to move to 5%, we’ll most likely need to see not just rate cuts priced out but rate hike pricing in 2025/early 2026, which we think is unlikely for now," Citi notes. The December core CPI came in at 0.225% m/m, below the 0.3% expected, providing relief to investors and driving 10-year yields 20 basis points lower. Despite sticky inflation in some sectors, the data supports the possibility of rate cuts later in the year, with the FOMC meeting potentially being a bullish event for Treasuries.