FX.co ★ US 10-Year Holds Steady Ahead of Powell Speech

The yield on the U.S. 10-year Treasury note remained stable at approximately 4.33% on Wednesday, following two consecutive days of decline. This steadiness reflects investors' anticipation of a pivotal address by Federal Reserve Chair Jerome Powell. Market experts are particularly attuned to Powell's commentary for any indications on how the Federal Reserve intends to manage a challenging economic landscape, characterized by threats of slowing growth and potential inflation driven by tariffs. Adding complexity to the situation, President Donald Trump has initiated an investigation into possible new tariffs on all critical mineral imports, commodities that the U.S. predominantly sources from China. This move has heightened concerns regarding a potentially escalating trade war. Despite Trump advocating for renewed negotiations, there is no indication that discussions are set to resume between Washington and Beijing. Furthermore, investors are closely monitoring possible trade developments with other major U.S. partners, as well as the upcoming release of March retail sales data. This data could provide valuable insights into consumer behavior amidst the ongoing trade-related uncertainties.