Analysts from UniCredit's investment research arm stated in a report that U.S. Treasury yields have remained relatively stable, even amidst an unpredictable U.S. political environment. These analysts indicated that the low volatility of U.S. Treasury yields suggests investors continue to favor U.S. government debt.

They noted that markets anticipate further interest rate cuts from the Federal Reserve, which could potentially enhance the performance of U.S. Treasuries. The analysts added that, furthermore, the enduring resilience of the U.S. economy continues to make American assets attractive.

They expressed that, from a medium-term perspective, foreign investors might reduce their investments in U.S. assets, but the likelihood of a significant sell-off in the short term has diminished.

According to data from Tradeweb, the yield on the 10-year U.S. Treasury note fell by 2.8 basis points to 4.211%.