FX.co ★ Treasury Yields Rebound

On Wednesday, the yield on the US 10-year Treasury note climbed to 4.36%, marking its first increase in six sessions, as the demand for safe-haven assets diminished. Investor confidence improved due to renewed trade optimism following President Trump's announcement of a deal with Japan, which aims to reduce tariffs from 25% to 15%. Japan has also committed to invest $550 billion in the US and to open its markets to key American products. Additionally, a trade agreement with the Philippines has been revealed, and there is growing anticipation of a potential agreement with the European Union. Meanwhile, Treasury Secretary Scott Bessent noted that the US administration is not rushing to replace Federal Reserve Chair Jerome Powell. The Federal Reserve is set to meet next week, with widespread market expectations of no changes to the federal funds rate as policymakers evaluate the inflationary consequences of global trade developments.