FX.co ★ Treasury Yields Ease After Recent Rally

The yield on the US 10-year Treasury note decreased to 4.27% on Wednesday, following a surge to 4.31% the previous day, marking its peak since August. This fluctuation occurred during a global bond sell-off, initially spurred by developments in Japan's financial market. The situation began to stabilize after Japan's finance minister called for calm among market participants, and the leader of a leading opposition party advocated for decisive measures to curb excessive market volatility. Additionally, the Bank of Japan continued its pre-planned bond-buying activities. In the United States, Treasury Secretary Scott Bessent confirmed communication with his Japanese counterpart. Investors remain vigilant regarding potential new tariff threats against Europe and the heightened risk of escalating trade tensions, especially in light of the Trump administration's expressed interest in acquiring Greenland. Moreover, market observers are keenly anticipating President Trump's appearance at the World Economic Forum in Davos as they seek insights into future policy directions.