FX.co ★ Treasury Yields Continue to Fall

The yield on the US 10-year Treasury note decreased by nearly 5 basis points to settle at 4.37% on Monday, marking its fourth consecutive decline and the lowest rate in over a week. Investor sentiment was characterized by caution due to increasing uncertainties surrounding upcoming tariffs and concerns regarding the Federal Reserve's independence. As the August 1st deadline nears, Commerce Secretary Howard Lutnick emphasized it as a definitive deadline for countries to begin implementing tariffs, despite ongoing negotiations. Additionally, Treasury Secretary Scott Bessent highlighted the need for a comprehensive reassessment of the Federal Reserve as an institution. President Trump's recent criticism of Fed Chair Jerome Powell for not implementing interest rate cuts has fueled speculation about the potential dismissal of Powell. Reports from the White House last week hinted at such a possibility, although President Trump subsequently denied any immediate plans to remove Powell from his role.