FX.co ★ Treasury Yields Ease After Recent Rally

The yield on the US 10-year Treasury note eased to 4.27% on Wednesday, following a spike to 4.31% in the prior session, marking its highest level since August. This shift comes as the global bond sell-off, which was initially sparked by movements in the Japanese market, began to show signs of stabilization. This was aided by Japan's finance minister, who appealed for calm among market participants, and a key opposition leader who demanded decisive action against extreme market fluctuations. The Bank of Japan likewise continued with its planned bond-buying activities. In the United States, Treasury Secretary Scott Bessent reported discussions with his Japanese counterpart. Concurrently, investors remain alert to the renewal of tariff threats against Europe and the potential intensification of trade tensions, particularly given the Trump administration's expressed interest in exerting control over Greenland. Additionally, market observers are eagerly anticipating President Trump's upcoming attendance at the World Economic Forum in Davos, as it may provide insights into future policy directions.