The yield on the US 10-year Treasury note remained steady above 4.3% on Tuesday, following a nearly 10 basis point increase during the previous session, buoyed by robust economic indicators and anticipation of a more nuanced tariff strategy. Data released on Monday revealed that US business activity picked up in March, with a pronounced recovery in the service sector counterbalancing a further decline in manufacturing. Additionally, recent comments from President Donald Trump have sparked optimism that he may pursue a more selective approach to tariffs as the April 2 deadline for his reciprocal tariffs approaches. However, his commitment to imposing tariffs on sectors such as automobiles and pharmaceuticals has introduced a layer of uncertainty in the market. This situation complicates the Federal Reserve's monetary policy outlook, with traders currently anticipating two quarter-point rate reductions this year—in June and September—while the probability of a third reduction in December increases.