FX.co ★ US 10-Year Yield Holds Advance

The yield on the 10-year U.S. Treasury note remained steady at around 4.53% on Thursday, reflecting recent gains as global trade tensions eased, subsequently reducing demand for safe-haven assets. Investor confidence was bolstered by the announcement of mutual tariff reductions between the U.S. and China, which are set to remain in effect for 90 days. This development alleviated concerns that intensifying trade barriers could potentially drive the U.S. economy into a recession. Furthermore, Beijing's decision to revoke its export ban on rare earths targeting U.S. entities was another positive signal of reduced tensions in the trade dispute. Currently, the market expects only two interest rate cuts from the Federal Reserve by the end of the year, down from the four rate cuts that were anticipated last week. This outlook persists despite April's consumer price index data being weaker than expected. Investors are now turning their attention to upcoming U.S. retail sales and producer inflation data on Thursday for further economic insights.