FX.co ★ US 10-Year Yield Inches Down

On Thursday, the yield on the 10-year U.S. Treasury note slightly dipped to 4.25%, retracting from its recent rebound that brought it down to a two-month low of 4.2% earlier in the week. Markets remained focused on forthcoming economic announcements to assess their implications for monetary and fiscal policies. Investor expectations for robust June payroll figures were dampened by an unexpected decline in U.S. jobs reported by ADP, a development that could prompt the Federal Reserve to hasten its shift towards rate cuts. Concurrently, the House representatives advanced President Trump's tax and spending proposal, moving it closer to congressional approval. This legislation is projected to significantly expand the U.S. budget deficit. Additionally, the market is anticipating updates from the Commerce Department concerning new trade agreements, as the July 9th deadline for reintroducing Liberation Day tariffs approaches. Notably, tariffs on Vietnam have been reduced to 20% from a previous 46%, although reports suggest that negotiations with other key trading partners are encountering obstacles.