FX.co ★ US 10-Year Yield Steady Ahead of Key Inflation Data

The yield on the 10-year U.S. Treasury note remained stable at approximately 4.42% on Friday. Investors were focused on the upcoming release of the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred measure of inflation. This data is anticipated to provide insights into whether tariffs are starting to contribute to broader price pressures, potentially affecting the Fed's future interest rate decisions. San Francisco Fed President Mary Daly emphasized on Thursday that the central bank might cut rates twice in 2025, but highlighted the necessity of patience to ensure inflation trajectories align with the 2% target. On Thursday, Treasury yields initially rose following a federal court decision declaring President Donald Trump’s reciprocal tariffs unlawful. However, yields soon retracted after a U.S. appeals court reinstated the tariffs, creating renewed market uncertainty and impacting investor sentiment.