The yield on the US 10-year Treasury note held steady around 4.36% on Wednesday, pausing a five-day slide as investors digested the latest trade developments. President Donald Trump announced a new trade agreement with Japan that includes a 15% tariff on Japanese exports to the US. He also said Japan would invest $550 billion into the US and open its markets to key American goods. Meanwhile, Treasury Secretary Scott Bessent indicated that the tariff truce with China will likely be extended ahead of its August 12 expiration.
Treasury yields had come under pressure in recent days amid uncertainty surrounding the August 1 deadline for most countries to strike trade deals with Washington, fueling concerns over a potential escalation in global tariffs. On the policy front, the Federal Reserve is set to meet next week, with markets broadly expecting no change to the federal funds rate as officials weigh the inflationary effects of trade tensions.
