FX.co ★ US 10Y Bond Yield Rises Above 4.2%

The yield on the US 10-year Treasury rose above 4.2%, recovering from its six-month low observed last Friday, as investors remained optimistic about advancements in US tariff negotiations. On Tuesday, Treasury Secretary Scott Bessent announced that more than 70 nations, including Japan, had approached the White House to commence discussions on tariffs. Concurrently, US-China tensions intensified after Beijing declared its intent to "fight to the end" in retaliation to President Trump's warning of imposing additional 50% tariffs unless China promptly withdraws its countermeasures. In terms of monetary policy, Austan Goolsbee, the President of the Chicago Fed, underscored the importance of the central bank thoroughly evaluating economic data before deciding on future policy actions. Investors are now focusing on this week's inflation data, which could play a crucial role in shaping expectations for potential interest rate cuts in the upcoming months.