FX.co ★ US 10-Year Treasury Yield Tumbles to 6-Month Low

The yield on the US 10-year Treasury note fell by up to 16 basis points to reach 3.89%, marking its lowest point in six months. This decline followed China's move to counter US tariffs. In response to the tariffs recently imposed by President Trump, China's finance ministry declared a 34% tariff on all US imports, effective April 10. This back-and-forth in tariffs has heightened market uncertainty, leading traders to adjust their projections for the Federal Reserve, now anticipating a total interest rate reduction of 100 basis points by the end of the year—an increase from the previous forecast of 75 basis points. Investors are now turning their attention to the upcoming US payroll data and a speech by Fed Chair Jerome Powell, seeking further clarity on the economic outlook and potential policy adjustments.