FX.co ★ US 10-Year Yield Rises Toward 5-Month High

The yield on the 10-year U.S. Treasury note increased to 4.27% on Thursday, nearing the five-month high of 4.3% reached just two sessions earlier. This rise is attributed to strong economic data which has reduced the immediate pressure for the Federal Reserve to lower interest rates this year. A postponed report from the Bureau of Economic Analysis indicated that household private consumption expanded rapidly during the latter half of the year. Furthermore, a decrease in new unemployment claims provided further evidence of stable job retention within the labor market. As a result, the data fortified expectations that the Fed will maintain its current rate next week. However, the long-term direction of the central bank remains uncertain, given the persistently high core Personal Consumption Expenditures (PCE) inflation, which poses a challenge to recent recommendations from Federal Open Market Committee members for a more supportive monetary policy. Despite these dynamics, yields remained below the week's peak as President Trump retracted attempts to purchase Greenland from Denmark and backed away from imposing tariffs on European nations that opposed the acquisition, alleviating investor concerns and thereby reducing movement away from dollar assets.