FX.co ★ US 10-Year Yield Edges Higher

The yield on the 10-year US Treasury note rose to approximately 4.03% on Monday, marking its highest point in over a week. This increase comes as investors anticipate a significant meeting between US President Donald Trump and Chinese President Xi Jinping, alongside a crucial Federal Reserve policy announcement this week. Market participants are optimistic about a potential trade agreement at the Trump-Xi meeting on Thursday, following constructive discussions over the weekend between US and Chinese negotiators. These discussions reportedly addressed several key issues, such as export controls, fentanyl regulation, and shipping tariffs. In parallel, traders have almost fully anticipated a quarter-point interest rate reduction, influenced by recent softer-than-expected inflation figures from Friday. However, the ongoing government shutdown continues to negatively impact market sentiment.