16.04.202519:10:40UTC+00US 10-Year Treasury Yield at 1-Week Low

The yield on the U.S. 10-year Treasury note dipped to a one-week low, falling below 4.29%, as Federal Reserve Chair Jerome Powell tempered expectations for a swift interest rate reduction. He highlighted that ongoing tariffs, such as President Trump's investigation into critical minerals and export limitations on certain AI chips to China, could complicate the Fed's dual objectives of controlling inflation and fostering economic growth. While these measures might lead to increased inflation and slower economic growth, Powell emphasized a cautious approach, indicating that more conclusive data is needed before any policy changes. Investor sentiment remains precarious as escalating trade tensions continue to cast a shadow over U.S. assets. This is despite a 1.4% surge in retail sales last month, driven largely by a 5.3% increase in auto sales in anticipation of possible auto tariffs.