FX.co ★ US 10-Year Treasury Yield Edges Up

The yield on the US 10-year Treasury note increased to 4.39% on Tuesday, partially retracing Monday's significant 13 basis points decline— the most substantial since January. This movement comes as investors weigh the growing trade tensions and the increasing risk of a recession. On Monday, President Trump suggested the possibility of granting temporary tariff exemptions on imported vehicles and auto parts. Concurrently, the Commerce Department indicated its plans to proceed with new tariffs on semiconductor and pharmaceutical imports by initiating trade investigations related to national security. This heightened trade uncertainty has caused investors to shy away from US assets, with Treasuries losing their traditional safe-haven appeal as concerns mount over US economic policy's trajectory. At the same time, Treasury Secretary Scott Bessent downplayed the recent bond market volatility, stating, "We are a long way" from needing any immediate intervention. However, he reassured, "we have a big toolkit that we can roll out" should the need arise.