FX.co ★ US 10-Year Yield Eases Ahead of Key Jobs Report

The yield on the 10-year US Treasury note dipped to approximately 4.26% on Thursday, interrupting a two-day increase as investors showed caution ahead of the anticipated June jobs report. A lower-than-expected outcome could bolster arguments for an earlier rate reduction by the Federal Reserve, potentially as early as July. Contributing to these expectations, ADP data released on Wednesday indicated an unexpected decline of 33,000 in private-sector employment for June, intensifying concerns about potential weaknesses in the labor market. On the trade scene, President Donald Trump revealed a new agreement with Vietnam, featuring a 20% tariff on imports—reduced from the initially planned 46%—instilling optimism for further bilateral agreements. Concurrently, Trump's proposed tax-and-spending bill, projected to increase the national debt by $3.3 trillion, encountered resistance in the House of Representatives, introducing an additional layer of fiscal uncertainty.