FX.co ★ US 10-Year Yield Holds Advance Ahead of CPI Data

The yield on the US 10-year Treasury note remained above 4.43% on Tuesday, marking its highest point in a month as investors anticipated the release of the June consumer price index—a crucial indicator of how the Trump administration’s tariff policies may be impacting inflation. Federal Reserve Chair Jerome Powell recently commented that inflation is expected to rise this summer due to ongoing tariff influences, suggesting that the Fed might delay any interest rate cuts until later in the year. However, concerns regarding the central bank's autonomy persist as President Donald Trump continues his critique of Powell, asserting that interest rates should be 1% or lower. Regarding trade, Trump expressed readiness to resume tariff discussions with the European Union and other major partners. Nonetheless, geopolitical tensions heightened when he threatened to impose additional tariffs of 100% on Russia unless a peace agreement with Ukraine is established within 50 days.