The yield on the US 10-year Treasury note edged down to 4.25% on Monday, nearing a two-month low, as investors monitored developments around President Trump’s proposed spending bill and growing expectations of Federal Reserve interest rate cuts later this year. The so-called “big beautiful bill” cleared a key procedural hurdle in the Senate and is now set for final debate.
President Trump is urging lawmakers to pass the legislation ahead of the Independence Day holiday. The bill is projected to add over $3 trillion to the national debt. Meanwhile, recent economic data has strengthened expectations that the Fed could implement at least two quarter-point rate cuts this year. Upcoming reports—including the monthly jobs figures and ISM PMIs—will offer further insight into the state of the economy. In addition, attention this week will also turn to trade negotiations between the US and key trading partners ahead of the July 9 deadline.
