FX.co ★ US 10-Year Yield Holds Steady

The yield on the 10-year U.S. Treasury note stabilized around 4.39% on Friday, following significant fluctuations earlier in the week. This came as investors assessed the ongoing trade developments and prepared for the upcoming Federal Reserve policy decision. Reports suggest that the United States and the European Union are nearing a trade agreement that would implement a 15% tariff on most EU goods, similar to a recent pact with Japan. Regarding monetary policy, the Federal Reserve is anticipated to maintain current interest rates while it evaluates the inflationary effects of these new tariffs. Additionally, President Donald Trump has moderated his stance on Federal Reserve Chair Jerome Powell after a landmark visit to the Federal Reserve's headquarters, stating he has no intention of dismissing him. Current market pricing indicates a projection of 43 basis points in rate cuts by the end of 2025, with anticipated reductions in both September and December.