FX.co ★ US 10-Year Treasury Yield Pares Gains

The yield on the U.S. 10-year Treasury note eased from early advances, stabilizing around 4.37% on Thursday, remaining close to its peak for the past month. Investors are assessing the intensifying trade conflict, its economic ramifications, and recent economic data releases. The Trump administration declared a 25% tariff on all automobiles not manufactured in the U.S., effective April 2, and President Trump cautioned about the potential for "far larger" tariffs against the EU and Canada should they take coordinated actions against U.S. trade policies. There is growing concern that these tariffs could adversely impact the U.S. economy and contribute to rising inflation. On the data side, the GDP growth rate for the fourth quarter was slightly revised upward to 2.4% from 2.3%, while core Personal Consumption Expenditures (PCE) prices increased marginally less than previously reported for the same period (2.6% compared to 2.7%). Additionally, initial claims were largely in line with expectations and consistent with previous readings, though the goods trade deficit exceeded forecasts. The PCE report, scheduled for release tomorrow, will be closely monitored for insights into evolving price pressures.