FX.co ★ US 10-Year Yield Steady as Markets Weigh Tariff Impact

The yield on the US 10-year Treasury held steady at approximately 4.35% on Thursday, close to a one-month high, as market participants evaluated the repercussions of new auto tariffs announced by President Donald Trump. On Wednesday evening, President Trump declared a 25% tariff on all imported automobiles and light trucks, set to take effect on April 2, along with reciprocal tariffs on countries that impose duties on American products—measures he intends to uphold throughout his second term in office. This intensifying trade dispute has heightened concerns about slowing US economic growth and has reignited fears of inflation, causing unease in financial markets. Additionally, US consumer confidence has already demonstrated weakening, dropping to its lowest point in over four years. Concurrently, data released on Wednesday indicated an unexpected decrease in new orders for non-defense capital goods, excluding aircraft—a critical indicator of business investment—following three consecutive months of growth. Investors are now focused on the upcoming PCE price index report on Friday, the Federal Reserve's favored measure of inflation.