FX.co ★ Treasury Yields Appear to Stabilize

On Wednesday, the yield on the US 10-year Treasury note seemed to stabilize around 4.3%, aligning near one-week lows. This comes amid expectations of ongoing market volatility due to escalating trade tensions with China. Prospects for a diplomatic resolution remain limited. Recently, President Trump initiated an investigation to determine whether tariffs should be applied to critical minerals, and Nvidia disclosed that the US government has restricted the export of specific AI chips to China without obtaining a license. This growing trade uncertainty continues to undermine investor confidence in US assets, with Treasuries seemingly diminishing in their traditional role as a safe-haven investment. Concurrently, retail sales experienced a notable increase of 1.4% last month, driven by a significant 5.3% rise in auto sales as consumers rushed to purchase vehicles ahead of impending auto tariffs. Federal Reserve Chair Powell's address at the Economic Club of Chicago today will be closely watched for insights into the Fed's future plans.