FX.co ★ Treasury Yields Edge Down

On Wednesday, the yield on the US 10-year Treasury note experienced a reduction of approximately 8 basis points, settling at 4.31%. This decrease continued the trend from Tuesday's slight drop, following President Trump's assurance that there are no plans to remove Fed Chair Jerome Powell. Such reassurances seemed to alleviate market concerns regarding political intervention in US monetary policy and potential challenges to the Federal Reserve's autonomy. Moreover, an increasingly diplomatic approach from the Trump administration toward China further elevated investor confidence and relieved some of the tension affecting the bond market. Earlier in the month, US Treasury yields had seen a sharp rise due to increasing policy uncertainty and escalating fears of a looming recession.