FX.co ★ US 10-Year Treasury Yield Edges Higher

The yield on the U.S. 10-year Treasury note rose above 4.29% on Thursday, reversing a two-day decline as investors considered the Federal Reserve’s latest policy position along with emerging developments in global trade. As anticipated, the Federal Reserve opted to maintain current interest rates. However, Chair Jerome Powell adopted a cautious tone, citing significant risks linked to both inflation and employment. He categorically rejected the notion of a preemptive rate cut to mitigate any potential economic impact resulting from tariffs. In the realm of trade, President Donald Trump declared on Truth Social that a press conference would be held on Thursday to announce a deal with a "major" country, reportedly the United Kingdom. Concurrently, he noted that tariffs on China would persist ahead of the upcoming U.S.-China discussions set to take place in Switzerland over the weekend. The blend of cautious messaging from the Fed and geopolitical uncertainties nudged yields upward as investors re-evaluated risk and inflation expectations.