FX.co ★ US 10-Year Yield Rebounds

The yield on the 10-year US Treasury note experienced a rebound to 4.3% from the previous day's two-month low of 4.2%, as markets evaluated the potential implications of recent economic policy changes on the Federal Reserve's rate projections. This follows President Trump's announcement of a new agreement imposing a 20% tariff on Vietnam, effectively doubling the tariffs initially placed during the Liberation Day respite on April 9th, raising concerns about the continuity of disinflationary trends in the US economy. Additionally, the Senate passed a tax-and-spending bill championed by Trump, amounting to $3.3 trillion in deficit spending. Contrastingly, the ADP report revealed an unexpected reduction of 33,000 jobs in June—the first decline observed in over two years—defying forecasts of a 110,000 job increase and suggesting heightened sensitivity of the labor market to economic uncertainties, tariffs, and a sustained period of high interest rates. Concurrently, the Senate narrowly approved Trump's bill, which is projected to increase the national debt by $3.3 trillion, with the legislation now returning to the House for final approval.