US 10-Year Yield Holds Advance Ahead of CPI Data

The yield on the US 10-year Treasury note held above 4.43% on Tuesday, hovering at a one-month high as investors awaited the June consumer price index, a key data point that could reveal the inflationary impact of the Trump administration’s tariff policies.

Federal Reserve Chair Jerome Powell recently signaled that inflation is likely to rise this summer due to ongoing tariff pressures—reinforcing expectations that the Fed may hold off on interest rate cuts until later this year.

However, concerns over the central bank’s independence persist, with President Donald Trump continuing his criticism of Powell and insisting that interest rates should be at 1% or lower.

On the trade front, Trump indicated a willingness to resume tariff negotiations with the European Union and other key partners.

Still, geopolitical tensions escalated after he threatened to impose secondary tariffs of 100% on Russia unless a peace agreement with Ukraine is reached within 50 days.