U.S. Treasury yields retreat as the market awaits Federal Reserve policy guidance

【CryptoWorld】U.S. Treasury yields came under pressure and declined during the European midday session. Although the market remains cautious, reactions to recent geopolitical events have been moderate, and traders are now focusing on more critical economic data releases.

According to Krisada Yoonaisil, an analyst at Exness, “The key time window for monetary policy expectations is approaching, and the market may enter a wait-and-see mode. As new data is released, the outlook for the dollar and interest rates will be re-priced.” The strategist emphasized that the speeches of Federal Reserve officials this week warrant close attention, especially any statements regarding inflation and the labor market, which could trigger significant adjustments in the forex and bond markets.

Looking at actual data, Tradeweb quotes show the two-year U.S. Treasury yield fell by 1.6 basis points to 3.460%, while the 10-year Treasury yield dropped by 2 basis points to 4.168%. This decline in yields reflects the market’s real-time response to recent economic data and policy signals.