FX.co ★ Treasury Yields Fall to April-Lows

On Tuesday, the yield on the US 10-year Treasury note decreased by 5 basis points, settling at 4%, while the 30-year yield fell below 4.6%, marking its lowest point since April. Investors returned from a long weekend to consider rising US–China trade tensions, the continuation of a federal government shutdown entering its third week, and an anticipated appearance by Federal Reserve Chair Jerome Powell, which might offer guidance on the Federal Reserve's plans for the month. Both the United States and China initiated new port fees on each other’s goods. Although President Trump initially responded with threats of significant tariff increases in reaction to China's new export restrictions on rare earth minerals, he later moderated his stance, assuring that trade relations "will all be fine." Meanwhile, the ongoing government shutdown has delayed the release of crucial economic data, leading investors to scrutinize upcoming bank earnings for signs of economic trends. Market expectations continue to factor in a quarter-point interest rate cut by the Federal Reserve this month, with another reduction anticipated in December.