FX.co ★ Treasury Yields Continue to Decline

On Thursday, the yield on the US 10-year Treasury note decreased by nearly 6 basis points, settling at 4.36%. This continued the downward trend observed in the previous session, influenced by renewed trade tensions, geopolitical risks, and inflation figures falling short of expectations. President Trump announced an impending initiative to issue formal communications to main trading partners, detailing unilateral tariff strategies aimed at compelling renegotiations of trade agreements. Adding to the market's unease, Iran issued a threat to target US military installations should nuclear talks fail, heightening geopolitical tensions. Concurrently, inflation data—both consumer and producer—came in lower than anticipated, bolstering expectations for two interest rate cuts by the Federal Reserve before the year concludes. Investors are also focused on today's critical 30-year bond auction, which is anticipated to offer further insights into the appetite for longer-term debt. The previous day saw robust demand at a $39 billion auction of 10-year notes.