Yields Edge Higher on Trade Optimism

• US government bond yields rose on Monday as global risk sentiment improved, driven by renewed optimism around the economic outlook following the US–EU trade deal.
• The US 10-year Treasury yield climbed 3bps to 4.41%, continuing the recent upward trend.
• In the short end, the US Treasury sold US$69 billion of 2-year notes at a yield of 3.92%, attracting strong demand from investors.
• Focus now shifts to countries that are yet to receive tariff exemption letters, like Australia. President Trump has floated a baseline tariff of 15–20% for nations without a deal by Friday, a development that could influence domestic market positioning if formalised in the coming days.