FX.co ★ US 10-Year Yield Stabilizes

On Wednesday, the yield on the US 10-year Treasury note remained stable at approximately 4.36%, halting a preceding five-day decline as investors assessed the latest trade developments. President Donald Trump revealed a new trade agreement with Japan, which imposes a 15% tariff on Japanese exports to the United States. Additionally, he announced that Japan would invest $550 billion into the US and open its markets to significant American products. Concurrently, Treasury Secretary Scott Bessent suggested that the tariff truce with China is likely to be extended before its August 12 deadline. Recent days saw a decline in Treasury yields due to uncertainty over the August 1 deadline for most countries to conclude trade deals with Washington, raising apprehensions about a potential increase in global tariffs. On the policy front, the Federal Reserve is scheduled to convene next week, with the market generally anticipating that there will be no changes to the federal funds rate as officials consider the inflationary impact of ongoing trade tensions.