FX.co ★ US 10-Year Treasury Yield Falls for 2nd Session

The yield on the US 10-year Treasury note experienced a decrease of approximately 5 basis points, settling at 4.72% on Friday. This decline followed a nearly 4 basis point drop on Thursday, as investors remained attentive to trade war developments and held onto hopes for a possible reduction in tensions. Reports indicated that China was considering the suspension of its 125% tariff on certain US imports, despite Chinese authorities denying the existence of any active tariff negotiations. Concurrently, President Trump reaffirmed ongoing discussions between his administration and Beijing. In addition, anticipations for earlier Federal Reserve rate cuts lent further support to bond markets. Fed Governor Christopher Waller expressed his readiness to support rate cuts if significant tariffs begin impacting the labor market. Likewise, Cleveland Fed President Beth Hammack suggested that the central bank might take action as early as June, contingent upon definitive evidence regarding the economy’s direction. Currently, markets are expecting a 25 basis point cut in June and are forecasting a total of three cuts by the end of the year.