FX.co ★ US 10-Year Yield Pulls Back

The yield on the 10-year US Treasury note dipped to 4.46% on Wednesday, retracting from the earlier session's five-week high of 4.5% following milder producer price inflation. In June, both the headline and core producer prices remained unchanged from the prior month, contrary to the anticipated 0.2% increase. This data contrasts with recent evidence of steady consumer prices. Financial markets continue to anticipate that the Federal Reserve will maintain its current funds rate unchanged this month, with expectations of a rate cut in September. Additionally, US President Trump has announced a reduction in tariffs on Indonesian imports to 19%, down from the previously stated 32%, signaling the possibility for major trading partners to negotiate lower tariffs before the August 1st deadline.