As investors considered the week’s worth of trade and economic news, the 10-year Treasury yield remained largely unchanged on Friday.
At 4.416%, the yield on the benchmark 10-year Treasury increased by less than one basis point. The 30-year yield increased by more than 1 basis point to 4.962%, while the 2-year yield barely changed at 3.927%.
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U.S. President Donald Trump is now focusing on talks with the European Union after announcing a trade agreement with Japan.After Washington signed a “massive Deal” with Japan, there was increased optimism that the two countries would reach a trade agreement. Trump later told dinner guests on Tuesday that “we have Europe coming in tomorrow, and the next day.”
Even if the recently announced reciprocal tariffs may be somewhat reduced by future trade agreements, businesses will probably pass those savings on to customers, which would negatively impact a “key source of U.S. growth,” according to a note from Eastspring Investments.
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According to the investment firm’s researchers, “a slowdown in U.S. consumption would negatively impact global exporters, and hence, weigh on overall global growth.” They also predicted that by the end of 2025, U.S. GDP growth would have slowed to about 1.6% annually.
In a daily note, Deutsche Bank economists noted that U.S. Treasurys also “struggled” due to a strong batch of recent U.S. data, including weekly initial jobless claims that decreased for the sixth consecutive week and better-than-expected flash purchasing managers’ index numbers, with the composite reading for the U.S. reaching a seven-month high of 54.6, above the 52.8 expected.
The president once more advocated for lower rates during an impressive tour of the Fed’s enormous restoration project.
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We would resemble a rocket ship. Even while we’re performing well, we would do better if interest rates were lowered,” Trump told reporters outside the central bank headquarters. “And we ought to. We are prime. Remember, the world falls apart without us. Therefore, our interest rate ought to be the lowest.
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