FX.co ★ US 10-Year Treasury Yield Rises as US-UK Trade Deal Lifts Mood

On Thursday, the yield on the US 10-year Treasury note increased by almost 5 basis points, reaching 4.32%. This uptick came as investor sentiment improved with the announcement of a trade agreement between the US and the UK, considered a preliminary move towards easing global trade tensions. Though the final details are still being worked out, President Trump described the agreement as a “great deal,” highlighting that the UK has consented to reduce or eliminate several non-tariff barriers that previously disadvantaged US products. In the meantime, officials from the US and China are scheduled to meet in Switzerland over the weekend for further trade discussions. Regarding monetary policy, the Federal Reserve kept interest rates unchanged, aligning with expectations. However, Chair Jerome Powell pointed to increased risks concerning both inflation and unemployment. He also dismissed the notion of a preemptive interest rate cut to mitigate possible economic repercussions from Trump’s proposed tariffs.