FX.co ★ Treasury Yields Edge Lower

On Monday, the yield on the U.S. 10-year Treasury note decreased to 4.25%, approaching a two-month low. This decline occurs as investors keep a close eye on developments related to President Trump's proposed spending legislation and heightened expectations of Federal Reserve interest rate cuts later this year. The spending bill, often referred to as the "big beautiful bill," passed a significant procedural vote in the Senate, setting the stage for final discussions. President Trump has urged lawmakers to approve the measure before the Independence Day holiday, although it is expected to add more than $3 trillion to the national debt. Recent economic indicators have bolstered the anticipation that the Federal Reserve might execute at least two quarter-point interest rate reductions this year. Attention will be centered on forthcoming reports, including monthly employment figures and ISM PMIs, which will provide additional insights into the economy's condition. Additionally, this week's focus will shift to trade discussions between the U.S. and key trade partners as the July 9 deadline approaches.