US 10-Year Yield Dips to 4.63% as Trump Urges Rates Cut
The yield on the 10-year US Treasury note dropped to around 4.63%, reversing a two-day surge after President Donald Trump urged the Federal Reserve to lower interest rates.
The markets expect the Federal Reserve to keep rates unchanged at next week’s policy meeting, with markets anticipating a rate cut in July and possibly another reduction later in the year.
Trump also said that he will discuss with Federal Reserve Chair Jerome Powell his view on rates “at the right time,” which probably suggests the government’s pressure shouldn’t be felt just yet when the FOMC meets next week.
Overnight, the dollar took a hit as Trump surprisingly told Fox News he’d rather not impose tariffs on China. This seems to feed into the growing sense that Trump is underdelivering on protectionism compared to pre-inauguration remarks and that ultimately some of those tariff threats may not materialise as long as some concessions are made on trade, ING said in a note.
However, he recently threatened tariffs against China, the EU, Canada, Mexico, and other BRICS nations, while also signalling tax cuts and promoting investment in AI infrastructure. These measures align with an expansionary fiscal policy, which could heighten inflationary pressures. #US 10-Year Yield Dips to 4.63% as Trump Urges Rates Cut Nigeria Showcases Sustainable Growth Strategy for Inclusive Development
