FX.co ★ US 10-Year Yield Slips Ahead of Fed

The yield on the US 10-year Treasury note declined to approximately 4.22% on Monday, hitting a one-week low as investors braced for the Federal Reserve's imminent policy announcement, where interest rates are largely anticipated to remain steady. Market participants will be scrutinizing the Fed for any indications regarding the timing of the next potential rate cut, with two quarter-percent reductions already anticipated for later this year. Additionally, all eyes are on President Donald Trump, who is set to announce his nominee to succeed Fed Chair Jerome Powell. The anticipated nominee is expected to favor Trump's preference for more substantial rate cuts. Investors are also poised to analyze a jam-packed week of economic reports from the US, which includes data on durable goods orders, producer prices, exports and imports, and house prices. Furthermore, trade tensions persist, as Trump has cautioned that Canada might face 100% tariffs if it enters into a trade agreement with China, contributing to the prevalent global market uncertainty.