FX.co ★ US 10-Year Yield Holds Near 4.5%

The yield on the U.S. 10-year Treasury note remained just below 4.5% on Monday, stabilizing after a significant rise the previous week, prompted by increasing concerns about the economic consequences of President Donald Trump's intensifying trade war. The recent Treasury selloff has highlighted growing investor anxiety and a possible decline in confidence in U.S. government debt, traditionally considered a safe-haven asset. That said, President Trump has exempted electronics from his new reciprocal tariffs, though he has noted that they remain under the current 20% Fentanyl Tariffs. Additionally, U.S. Commerce Secretary Howard Lutnick announced that these imports would face new separate levies within the next two months. On the macroeconomic side, data from the University of Michigan indicated a sharp drop in consumer sentiment in April, hitting its lowest point since 2022. Meanwhile, one-year inflation expectations have surged to their highest level since 1981, intensifying concerns about ongoing inflationary pressures.