FX.co ★ US 10-Year Yield Holds Pullback

On Thursday, the yield on the 10-year US Treasury note stabilized at 4.25%, maintaining much of the reduction seen since it reached a five-month peak of 4.3% on Tuesday. This shift occurred as market participants eased their reluctance toward US assets. President Trump downplayed the immediate necessity of acquiring Greenland from Denmark and withdrew the threat of imposing tariffs on major European economies. This decision marked a notable shift in the hawkish political rhetoric previously observed in his administration. As a result, some confidence was restored in the prospects for transatlantic trade and policy stability. The shift in tone had caused investors to reconsider their move away from dollar-denominated debt, highlighted by a Danish pension fund's commitment to sell off US Treasuries. Despite this, recent jobless claims data continue to suggest minimal job cuts within the labor market, reducing the pressure on the Federal Reserve to implement interest rate cuts. Moreover, there was a slight upward revision in the US GDP figures for the third quarter, according to updated reports.