US Treasury yields dropped significantly on Wednesday as most Federal Reserve officials signaled a likelihood of rate cuts in the near future. The 10-year yield fell nearly 8 basis points to 4.342%, while the 30-year bond yield declined by 7 basis points to 4.873%. The 2-year Treasury yield also decreased by 5 basis points, reaching 3.86%.
The decline in yields was largely driven by expectations of future interest rate cuts. According to the Federal Reserve’s June meeting minutes, policymakers acknowledged that some reduction in the federal funds rate target range this year might be necessary due to slowing economic growth and hiring.
Meanwhile, investors were watching for updates on US tariffs. President Donald Trump announced new tariff rates on goods from at least six more countries, including the Philippines and Iraq, with rates ranging from 20% to 40%. The new tariffs are set to take effect on August 1, following a previously stated deadline that Trump had said was “not 100% firm.”
Source: https://www.cnbc.com/2025/07/09/treasury-yields-move-lower-as-investors-monitor-latest-tariff-news.html