FX.co ★ US 10-Year Yield Rises Further

The yield on the 10-year US Treasury note climbed above 4.37% on Monday, aligned with declines in US stocks and the US dollar, as concerns related to US economic policy and political stability prompted investors to shift their focus towards gold and international assets. This recent downturn stemmed from intensified expressions of discontent from the White House regarding Fed Chair Jerome Powell's choice to maintain interest rates at their current level in the last meeting. Additionally, there are indications that President Trump might consider dismissing Powell, jeopardizing the Federal Reserve's independence. Treasury securities faced additional pressure due to ongoing investigations ordered by the Trump administration, which could potentially lead to the imposition of tariffs on semiconductors, pharmaceuticals, copper, and lumber. Such actions are likely to exacerbate the recent rise in inflation expectations and increase the risk of a recession. Furthermore, reports highlighted the absence of imminent trade agreements between the US and its trading partners following discussions with Japan, India, South Korea, and EU member countries.