FX.co ★ 10-Year Treasury Yield Remains at April-Lows

The yield on the US 10-year Treasury stabilized around 4% on Wednesday, maintaining its lowest mark since April. This stability comes as investors evaluate recent trade developments alongside remarks from Federal Reserve Chair Jerome Powell, which bolstered expectations for ongoing interest rate reductions. Treasury Secretary Scott Bessent offered a proposal to extend the pause on significant US tariffs on Chinese imports, contingent on Beijing postponing its impending curbs on rare earth exports. This proposal has provided some relief to investors amid recent tensions. These moves follow a fresh escalation in trade disputes, highlighted by President Trump's threat to impose an embargo on cooking oil in retaliation for China's boycott of US soybeans. On the monetary policy front, Chair Powell highlighted rising employment risks on Tuesday, reinforcing market speculations of further monetary easing. Currently, the probability of the Federal Reserve implementing a 25-basis-point rate cut later this month stands at approximately 97%.