FX.co ★ US 10-Year Yield Holds Advance

The yield on the US 10-year Treasury note maintained its upward trajectory, hovering around 4.41% on Monday as investors processed the latest trade developments alongside anticipating crucial economic data. Market sentiment was influenced by President Donald Trump's announcement of a 30% tariff on imports from the European Union and Mexico, scheduled to commence on August 1. Reports suggest that the EU is enhancing dialogue with other affected nations, such as Canada and Japan, to potentially explore coordinated responses. Meanwhile, investors exercised caution in anticipation of a significant US inflation report due this week, which could shed light on the wider economic repercussions of the new tariffs and potentially impact the Federal Reserve’s policy direction. Adding to the prevailing uncertainty, economic adviser Kevin Hassett indicated that President Trump "can fire" Fed Chair Jerome Powell "if there’s cause," sparking renewed debate over the central bank's independence.