FX.co ★ US 10-Year Treasury Yield Rises

On Monday, the yield on the US 10-year Treasury increased by over 6 basis points, reaching 4.31%, marking its highest point in over a week. This uptick occurred as traders kept a close watch on developments in trade policy and evaluated significant economic indicators. Reports have suggested that the upcoming wave of tariffs from President Donald Trump will likely be more targeted compared to the broader measures previously threatened. This has raised hopes that the new US tariffs, slated to begin on April 2nd, might be less severe than originally expected. In parallel, preliminary S&P Global PMIs indicated a substantial growth in the services sector for March. Conversely, the manufacturing sector experienced a return to contraction, with input prices escalating sharply due to the effects of tariffs. Currently, traders are factoring in two anticipated quarter-point interest rate cuts by the Federal Reserve this year, one in June and another in September, with an increasing likelihood of a third cut in December.