FX.co ★ US 10-Year Yield Edges Higher on Trade Court Ruling

On Thursday, the yield on the 10-year US Treasury note rose above 4.5%, marking a second consecutive session of increases as diminishing tariff concerns led to decreased demand for safe-haven investments. This development followed a decision by the US Court of International Trade, which ruled that former President Donald Trump overstepped his authority by imposing reciprocal tariffs. The court labeled these measures as "unlawful for all," expanding beyond the five companies that brought forward the lawsuit, and ordered the tariffs to be annulled and permanently prohibited. The Trump administration is anticipated to challenge this ruling. As this unfolds, investors are also closely monitoring Senate discussions regarding Trump's comprehensive tax and spending proposal, which is poised to undergo significant modifications in the Senate. Concurrently, minutes from the most recent Federal Open Market Committee (FOMC) meeting indicated that policymakers are adopting a cautious approach as they assess the broader economic ramifications of Trump's initiatives. Officials highlighted the growing risks of inflation and unemployment.