FX.co ★ US 10-Year Yield Holds Steady

The yield on the 10-year US Treasury note settled at approximately 4.36% on Friday, concluding a tumultuous week characterized by escalating trade tensions and evolving policy predictions. Investor caution persisted following President Donald Trump's announcement of a 35% tariff on Canadian imports, effective August 1, and a plan to impose 15% to 20% tariffs broadly on other trading partners. Earlier in the week, the administration further announced 50% tariffs on copper imports, as well as Brazilian goods. On the monetary policy front, Chicago Fed President Austan Goolsbee resisted calls for interest rate cuts intended to alleviate government debt expenses, reiterating that the Federal Reserve's focus remains on employment and inflation management. Labor market indicators continued to exhibit fundamental strength, as initial jobless claims decreased for the fourth consecutive week, surpassing expectations and supporting the notion of an enduring economic resilience, as corroborated by last week’s unexpectedly robust non-farm payrolls report.