FX.co ★ US 10-Year Yield Set to End Week Higher

The yield on the 10-year U.S. Treasury note hovered around 4.24% as the week closed on Friday. This reflects a slight increase after a week marked by uncertainty due to fluctuating geopolitical and market conditions. Early in the week, the benchmark yield rose to a five-month peak in response to President Donald Trump's threats to impose new tariffs on several European nations opposing his Greenland acquisition plans. This move sparked concern over the potential for Europe to leverage its significant U.S. asset holdings, causing further market instability. However, tensions eased after Trump shifted tactics, reaching a preliminary agreement with NATO regarding a possible future deal involving Greenland. Additionally, global bond markets saw turbulence, driven by an initial rise and subsequent drop in Japanese yields amid growing fiscal concerns. Meanwhile, robust U.S. economic data supported the prevailing belief that the Federal Reserve is likely to maintain steady interest rates in its upcoming meeting.