FX.co ★ Treasury Yields Rise

The yield on the US 10-year Treasury note climbed nearly 5 basis points to 4.43% on Tuesday, reaching its highest point since mid-June. This movement came as investors evaluated the latest trade developments and found some reassurance in the newly set August 1st deadline for reciprocal tariffs, which extends the time available for negotiation. The tariffs announced are scheduled to be implemented on August 1st, allowing countries additional time to finalize trade agreements. President Trump introduced updated tariff rates affecting 14 nations that have yet to secure trade deals with the United States, including a 25% import tariff on goods from Japan. In a separate development, reports suggested that the US has proposed maintaining a 10% baseline tariff on European Union goods as part of a potential agreement with the EU. Meanwhile, speculation that Japanese officials might announce further fiscal stimulus measures ahead of the upper house elections on July 20 also exerted pressure on global bond markets, especially those with longer maturities. Consequently, the US 30-year yield appeared to be heading back toward the 5% mark.