FX.co ★ US 10-Year Yield Holds Above 4.3%

The yield on the 10-year US Treasury note remained above 4.3% on Monday, following a rise over the previous two sessions. Investors are focusing on a crucial meeting set to take place in Washington between US President Donald Trump and Ukrainian President Volodymyr Zelenskiy, alongside the Federal Reserve’s upcoming Jackson Hole symposium scheduled for later this week. President Trump stated that he intends to encourage President Zelenskiy to expedite a resolution after his recent dialogue with Russian President Vladimir Putin on Friday. Although their discussions did not achieve a ceasefire agreement, President Putin has agreed to allow the US and Europe to offer Ukraine significant security assurances as part of a future peace agreement. Regarding monetary policy, market predictions indicate an 84% probability of a 25 basis point interest rate reduction by the Federal Reserve in September; however, unexpected strong producer inflation and retail sales figures have dampened expectations for a more substantial 50 basis point cut. Federal Reserve Chair Jerome Powell is anticipated to offer additional insights at the Jackson Hole symposium.