FX.co ★ US 10-Year Yield Holds Advance

On Tuesday, the yield on the 10-year US Treasury note maintained its upward trajectory, surpassing 4.4%, as investors offloaded US bonds, equities, and the dollar amidst escalating concerns about economic policy and political stability. President Donald Trump heightened his demands on the Federal Reserve, urging immediate interest rate cuts to avert an economic downturn. His criticism of Federal Reserve Chair Jerome Powell—who supports a cautious approach to assess the inflationary impact of tariffs—rekindled fears of political meddling in monetary policy. Further market unease was fueled by speculation from the White House about possibly removing Powell, which raised significant concerns about the Fed's independence and dampened confidence in US financial assets. Compounding this uncertainty, global trade negotiations remained deadlocked. China accused the US of exploiting tariffs and cautioned other countries against making concessions that would benefit Washington, diminishing prospects for a near-term resolution.