FX.co ★ US Treasury Yields Little Changed

On Tuesday, the yield on the US 10-year Treasury note remained steady around 4.4%, as investors assessed both global and domestic economic scenarios and anticipated further developments in trade negotiations. The Organization for Economic Co-operation and Development (OECD) revised its global growth forecast downwards for the second time this year. This adjustment was attributed to the escalation of trade barriers, tighter financial conditions, waning business confidence, and increased policy uncertainty. In the realm of trade, a meeting between President Trump and President Xi is anticipated later this week amid escalating US-China tensions. On the economic data front, the JOLTS report revealed an unexpected rise in job openings for April, suggesting ongoing strength in labor demand. Conversely, factory orders experienced a slightly larger than anticipated decline. Additionally, the President of the Federal Reserve Bank of Atlanta reaffirmed a cautious perspective regarding interest rates, expressing no urgency to implement cuts, and emphasized the need for further progress on inflation. The Federal Reserve is expected to maintain the federal funds rate at its current level this month.