Optimism in trade dampens safe-haven demand, U.S. Treasury yields fall across the board

Driven by optimistic expectations of a forthcoming trade agreement between China and the United States, market demand for safe-haven assets has weakened, leading to selling pressure on U.S. Treasuries. The yield on the 10-year benchmark U.S. Treasury bond briefly rose to 4.04%, reaching a new high in over a week. Analysts point out that investors are closing out their blind pursuit of safe-haven assets, resulting in significant market volatility, with traders closely monitoring Federal Reserve policies and the outcomes of the U.S.-China presidential meeting. Despite the government shutdown causing a lack of economic data, the market has almost priced in a reduction in the Federal Reserve's benchmark interest rate