21.01.202615:27:07UTC+00US 10-Year Yield Holds Near 5-Month High

The yield on the 10-year US Treasury note hovered around the 4.29% level on Wednesday, maintaining the week's growth to reach five-month highs. This comes as markets continue to gauge the extent of global reluctance towards US assets and the implications of bond sales in Japan. During the World Economic Forum, the US administration reiterated its strong interest in acquiring Greenland and advised against potential European responses to tariffs, although President Trump ruled out the use of military intervention. Meanwhile, global bond markets are feeling the pressure due to the decline in Japanese sovereign bonds, following Prime Minister Takaichi's indication of potential tax cuts on food should she win the imminent snap elections. This proposal adds to Japan's expanding deficit challenges. Furthermore, the Federal Reserve's interest rate outlook leans towards an increase, driven by the possibility of former Fed Governor Walsh being appointed as Chair later this year. Known for his hawkish stance and advocacy for a more streamlined Fed balance sheet, Walsh's nomination could shift market expectations.