U.S. Treasury Secretary Scott Bessent views the 10-year Treasury yield as key to President Donald Trump’s push for lower interest rates, but traders see little room for further declines. The yield increased Friday after a strong jobs report signaled a resilient labor market, reducing pressure on the Federal Reserve to cut rates. Inflation expectations jumped above 4%, fueled by concerns over Trump’s impending tariffs on steel and aluminum. Bond traders expect yields to stay elevated, with the Fed likely holding rates steady until September.
