FX.co ★ US 10-Year Bond Yield Rises Slightly

The yield on the 10-year US Treasury note increased to approximately 4.48 on Thursday. This rise occurred as market tensions eased following US President Donald Trump's announcement that it was "highly unlikely" he would dismiss Federal Reserve Chair Jerome Powell. Yields had previously dropped amid rumors that Trump might soon terminate Powell, which investors feared could precipitate more rapid and significant rate cuts. Investors are now turning their attention to the impending US retail sales data, expected later in the day. This data is anticipated to offer further insight into the current state of the US economy and the Federal Reserve’s policy direction. This focus follows recent mixed signals from inflation reports—where there has been a softening in producer prices, contrasted by an uptick in consumer inflation. In trade developments, Trump stated on Wednesday that the US would probably maintain its 25% tariff on imports from Japan. He also alluded to the possibility of a new agreement with India, following his recent announcement of a deal with Indonesia.