FX.co ★ Treasury Yields Rise

The yield on the U.S. 10-year Treasury note climbed to 3.99% on Thursday, marking its first increase this week. Investors' attention was directed towards the upcoming U.S. Consumer Price Index (CPI) report, slated for release on Friday, and they also weighed the implications of renewed tariff risks. According to a Reuters report, the Trump administration is contemplating actions to limit a wide array of software-powered exports to China in response to Beijing's recent restrictions on rare earth exports. Despite these tensions, President Trump confirmed that his meeting with Chinese President Xi Jinping is still "scheduled." Even amidst the ongoing government shutdown, the CPI report is expected to be published on Friday. Market participants anticipate that headline inflation will have accelerated for the second consecutive month in September, reaching its highest level since May 2024. However, both annual core inflation and monthly metrics are expected to remain stable, indicating that the impact of tariff-related price pressures appears contained.