FX.co ★ US 10-Year Yield Rebounds

The yield on the 10-year U.S. Treasury note ascended to 4.45% on Thursday, continuing its rise from the previous session as market participants evaluated U.S. employment data, trade dynamics, and their implications for policy rates. Newly released figures showed a further decrease in initial jobless claims, countering expectations of an increase and reinforcing the perception that the U.S. labor market remains fairly strong, despite slower hiring activity. Market futures still suggest expectations of two rate reductions this year. Meanwhile, reports emerged that U.S. and EU officials are close to reaching an agreement on imposing a 15% tariff on imports from the EU, a rate lower than previous threats of 30%. This move mirrors similar agreements made with major economies in Japan and Southeast Asia. Additionally, Treasury Secretary Bessent announced that the tariff truce between the U.S. and China is likely to be extended before its scheduled expiration on August 12th.