FX.co ★ US 10-Year Yield Edges Up on US-China Trade Optimism

On Monday, the yield on the US 10-year Treasury note increased to approximately 4.4%, marking a three-week peak, prompted by optimism regarding a potential US-China trade agreement. This optimism diminished the appeal for safe-haven assets. This development follows weekend negotiations in Switzerland where US officials highlighted an accord designed to reduce the trade deficit. Chinese representatives shared this upbeat sentiment, noting that an "important consensus" was achieved. Further information is anticipated later today. Meanwhile, investors are keeping a close watch on vital economic indicators this week, including consumer inflation data on Tuesday, as well as retail sales and producer prices set for release on Thursday, to gauge the broader economic impact of the trade dispute. In terms of monetary policy, Federal Reserve Chair Jerome Powell took a more assertive stance, dismissing the likelihood of a preemptive interest rate cut in reaction to trade risks and suggesting a cautious approach to any future policy adjustments.