US Treasuries Rally After Successful 10-Year Note Auction

The Treasury market rallied after a successful auction of 10-year notes, easing concerns about financing US deficits. Yields dropped to 4.34% following strong demand for the $39 billion auction. The market reacted positively to the auction results, with shorter-maturity yields also declining. Despite pressure from President Trump, anticipation of Fed rate cuts continues. Uncertainty surrounding trade policy is reflected in inflation metrics. Rates swaps suggest two quarter-point reductions by the end of 2025. Policymakers noted “considerable uncertainty” about the tariffs’ impact on inflation. Markets are betting on a dovish path for US interest rates.

Read more at Yahoo Finance: US Treasuries Jump as Strong Auction Calms Investor Jitters