FX.co ★ US 10-Year Yield Steady Amid Heightened Uncertainties

The yield on the 10-year US Treasury note remained approximately 4.39% on Friday, maintaining a stable range as investors assessed increasing geopolitical risks and an uncertain economic future. Demand for safe-haven assets exerted downward pressure on yields this week, largely influenced by growing tensions between Israel and Iran, alongside the potential for US military involvement. Reports suggest that President Donald Trump has extended an offer to Iran for a final chance to discontinue its nuclear program, postponing any decisions regarding military action for up to two weeks. On the monetary policy front, the Federal Reserve opted to keep interest rates steady earlier this week and reiterated its cautious, data-driven approach. Chair Jerome Powell cautioned that inflation might rise in the upcoming months, attributed to the effect of new tariffs. Additionally, the Federal Reserve's revised projections indicate two 25 basis point rate cuts anticipated in 2025, together with weaker growth outlooks.