FX.co ★ US 10-Year Yield Holds Near 3-Month Low

The yield on the 10-year US Treasury note traded below 4.05%, holding near its lowest level in almost three months as renewed worries over AI-driven job displacement and increasing trade-policy uncertainty pushed investors toward safe-haven government debt. Valuations across software services and payments sectors reflected mounting concern that rapid advances in artificial intelligence could disrupt key industries in unpredictable ways, prompting a rotation of capital into Treasuries.

The shift was compounded by reports that several major European and Asian economies are weighing whether to suspend the implementation of trade agreements reached with the United States, after the Presidential Administration moved to reimpose tariffs under an “economic emergency” tied to the balance of payments. That action followed the Supreme Court’s decision on Friday to strike down tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). Even so, the yield curve flattened as investors scaled back expectations for near-term interest rate cuts by the Federal Reserve.