FX.co ★ US 10-Year Yield Stabilizes Ahead of Key Economic Data

The yield on the US 10-year Treasury note remained stable at approximately 4.24% on Monday, as investors prepared for significant economic reports due this week. These reports are expected to shed light on the initial impacts of President Donald Trump's tariffs. Market participants are particularly focused on Friday's April jobs report, along with the first-quarter GDP figures and the Federal Reserve's preferred Personal Consumption Expenditures (PCE) inflation index set for release on Wednesday. Should the data come in weaker than anticipated, it may increase the likelihood of the Federal Reserve implementing interest rate cuts sooner than planned. Currently, markets are forecasting a 25-basis-point reduction in interest rates in June, with a total of three cuts expected by the end of the year. Last week, President Trump signaled his openness to easing tariffs on Chinese imports, and in response, Beijing opted to exempt certain American goods from its steep 125% tariffs. Additionally, Trump reversed his earlier stance on potentially removing Fed Chair Jerome Powell, a move that had previously unsettled investor confidence in US assets.