US Treasury yields remain steady ahead of the Federal Reserve's monetary policy meeting, with the 10-year Treasury bond yield holding at 4.345%. This stability comes despite recent surges in yield, lifting the coupon rate. The US Dollar Index (DXY) has slipped 0.31% to 99.47, failing to follow yields higher due to a widening trade deficit and cautious Fed tone.

*Market Expectations:*

- *Federal Reserve Decision*: The Fed is expected to keep interest rates unchanged at 4.25%-4.50% for the third consecutive meeting.

- *Rate Cuts*: Markets predict a July rate cut and two more by year-end.

- *Powell's Guidance*: Investors are watching for clues on inflation pressure from tariffs and economic slowdown risks.

*Bond Auctions:*

- *10-year Treasury Auction*: The US Treasury will sell $39 billion of 10-year bonds.

- *30-year Bond Auction*: $22 billion of 30-year bonds will be auctioned on Thursday.¹ #MostRecentTrade