FX.co ★ US 10-Year Yield Holds Advance

The yield on the US 10-year Treasury hovered around 4.18% on Tuesday, following a significant rise in the previous day, as investors re-evaluated the prospects for economic growth and inflation in light of swiftly changing trade developments. Previously, yields had been under pressure as intensifying trade tensions—fueled by President Donald Trump's stringent tariff policies—sparked fears of a recession and prompted a shift towards safer assets. However, these concerns somewhat subsided after President Trump expressed a willingness to engage in trade talks with key partners. Treasury Secretary Scott Bessent noted that nearly 70 countries have reached out to the White House to discuss tariffs. On the monetary policy front, Chicago Fed President Austan Goolsbee mentioned that the central bank would rely on hard data before making its next decision. Investors are now closely watching this week's inflation figures, which could be crucial in shaping expectations for potential interest rate cuts in the coming months.