FX.co ★ US 10-Year Yield Holds Advance

The yield on the US 10-year Treasury note remained above 4.36% on Friday, poised for a second consecutive weekly increase. This development was bolstered by an optimistic outlook on global trade and a decrease in the likelihood of immediate interest rate reductions. Investor sentiment received a boost after President Donald Trump announced a preliminary trade deal with the UK, marking the first agreement since the implementation of extensive US tariffs last month. Trump also raised the possibility of further trade agreements and suggested that tariffs on China might be reduced, contingent on the outcomes of this weekend's high-level trade discussions in Switzerland. Regarding monetary policy, Federal Reserve Chair Jerome Powell adopted a more hawkish stance, countering the idea of an early rate cut in light of trade uncertainties. He expressed concerns over persistent inflationary trends and labor market risks, underscoring the Fed's cautious approach to potential policy changes.