FX.co ★ US 10-Year Yield Declines for Third Consecutive Session

The yield on the 10-year US Treasury note fell below 4.5% during the post-holiday trading session on Tuesday, marking its third consecutive day of decline. This drop occurred as investors assessed uncertainties related to fiscal policy and trade. Focus has now shifted to the forthcoming discussions in the US Senate regarding President Trump's comprehensive tax and spending proposals, which are anticipated to considerably enlarge the federal deficit. According to the Congressional Budget Office, this legislation may increase the US government's debt from $36.2 trillion by approximately $3.8 trillion over the next ten years. Trade tensions remain an area of concern, particularly following Trump's decision to postpone the imposition of 50% tariffs on EU imports until July 9, a shift from the initially planned date of June 1. Additionally, investors are eagerly anticipating a series of US economic indicators due on Tuesday, including those related to durable goods, housing, and consumer confidence. Further, market participants will be paying close attention to comments from Federal Reserve officials Kashkari and Williams, seeking insights into the central bank’s future policy direction.