The yield on the 10-year U.S. Treasury note remained steady around 4.18% on Thursday, finding stability after recent drops. Renewed optimism surrounding global trade talks has lessened the appeal of safe-haven assets. This upbeat market sentiment was influenced by comments from President Donald Trump on Wednesday. He indicated potential trade agreements with India, Japan, and South Korea, and expressed confidence in reaching an accord with China, sparking hopes that the escalation of tariffs may have hit its peak.
The yield's steadiness occurs despite disappointing economic data. On Wednesday, reports indicated that the U.S. economy shrank by 0.3% on an annualized basis in the first quarter, marking its first contraction in three years. This contraction was largely attributed to increased imports and a notable slowdown in consumer spending. Investors are now turning their attention to upcoming economic indicators, such as jobless claims and the ISM manufacturing survey set to release on Thursday, followed by the April jobs report on Friday. These data points are critical as investors evaluate the risk of a broader economic downturn.
