FX.co ★ US 10-Year Yield Stabilizes

On Thursday, the yield on the US 10-year Treasury note remained stable at approximately 4.39% after experiencing gains in the prior session. This steadiness came as market concerns over the leadership of the Federal Reserve diminished. Treasury Secretary Scott Bessent provided reassurance to the markets by stating that Fed Chair Jerome Powell is not required to resign, despite ongoing criticism from President Donald Trump regarding his management of monetary policy.

Attention is now focused on the upcoming Federal Reserve policy meeting next week, where it is widely anticipated that interest rates will remain unchanged due to persistent uncertainties surrounding global tariffs. Meanwhile, demand for safe-haven assets has decreased as market sentiment has improved owing to signs of progress in trade discussions. Reports suggest that the US and the EU are moving forward with negotiations on an agreement that includes a 15% baseline tariff on EU goods, with possible exemptions. Additionally, Bessent indicated that the US-China tariff truce is likely to be extended prior to its scheduled expiration on August 12.