FX.co ★ US 10-Year Yield Holds Decline

The yield on the US 10-year Treasury note remained steady around 4.53% on Friday, following a decline of approximately 5 basis points during the previous session. This decrease comes after touching three-month highs earlier in the week. The drop in yields occurred after the House narrowly passed President Trump’s latest tax-and-spending legislation on Thursday, which now moves to the Senate for further deliberation. Earlier in the week, Treasury yields surged due to escalating concerns that this legislation could exacerbate the already sizable US national debt, currently at $36 trillion. The Congressional Budget Office has estimated that the bill could add nearly $4 trillion in costs, intensifying fears of long-term fiscal instability. Investors' unease was further heightened by Moody’s recent decision to downgrade the US credit rating from Aaa to Aa1, citing ongoing budget deficits and the increasing burden of servicing federal debt.