FX.co ★ US 10-Year Yield Steady as Investors Weigh Tariff Uncertainty

On Monday, the yield on the US 10-year Treasury note remained unchanged at 4.42% as investors evaluated the potential economic impact stemming from renewed global trade tensions. This stability in yields indicates a cautious approach as market participants await significant data releases scheduled for later in the week. On late Friday, President Donald Trump announced his intention to increase tariffs on steel and aluminum imports to 50% effective June 4, drawing criticism from key trade partners. Simultaneously, China dismissed Trump's allegations of breaching a trade agreement made in Geneva last month, casting doubt on the possibility of an imminent discussion between Trump and Chinese President Xi Jinping. Despite these challenges, National Economic Council Director Kevin Hassett indicated over the weekend that a conversation between the two leaders could potentially occur as soon as this week. Moving forward, investors are keenly observing a range of US economic reports, particularly the monthly jobs data due on Friday, which may offer new perspectives on how shifts in trade policy are influencing the broader economy.