FX.co ★ US 10-Year Yield Holds Decline Amid Trade Uncertainty

The yield on the US 10-year Treasury note remained steady at approximately 4.2% on Tuesday, following a decline over the prior two sessions. This stability comes amid heightened demand for safe-haven assets, driven by President Donald Trump's intensifying trade measures, which have cast a shadow over the economic forecast. This week, President Trump is expected to implement reciprocal tariffs targeting "all countries," prompting concerns about potential retaliatory actions from key trading partners and the risk of global economic disruptions. In terms of monetary policy, John Williams, the President of the New York Federal Reserve, mentioned that predicting the future adjustments of interest rates is currently uncertain. He highlighted that maintaining rates at their current levels "for some time" would allow policymakers to evaluate forthcoming data thoroughly before making any decisions. Additionally, market participants are closely monitoring significant labor market reports, including Tuesday's job openings figures, Wednesday's ADP employment report, and Friday's monthly payrolls report. These reports are anticipated to offer new perspectives on the Federal Reserve's potential direction regarding rate cuts.