US yields drop as Fed decision and trade woes loom

The 10-year US Treasury note yield fell below 4.6% on Monday, marking its second consecutive decline as traders braced for the Federal Reserve's monetary policy decision later this week.

US yields drop as Fed decision and trade woes loom

While the central bank is widely expected to keep interest rates unchanged, it faces growing pressure from President Donald Trump to cut borrowing costs in response to economic challenges. Investors are also closely watching the upcoming PCE price index report, the Fed’s preferred measure of inflation, for insights into the central bank’s future policy moves. Meanwhile, concerns about global trade intensified after Trump threatened to impose tariffs and sanctions on Colombia.

Colombia blocks US flights, fueling trade tensions

This warning followed Colombia’s decision to block two US military aircraft carrying deported migrants, a move tied to the ongoing crackdown on illegal immigration. Trade tensions and monetary policy uncertainty contributed to a cautious market outlook.