US Treasury yields dropped on Tuesday as investors reacted to economic uncertainty and awaited a key housing market report. Ten-year treasury yields fell over 5 basis points while two-year yields slipped by more than 4 basis points. The drop coincided with continued concerns about the US economy’s future performance, which is being influenced by recent data showing a stagnant economy. 10-year and 2-year Treasury yields dipped to 4.34% and 4.12%, respectively. This decline reflects investor uncertainty and follows President Trump’s recent announcement of escalating trade tariffs against Mexico and Canada. The market is now awaiting the release of the S&P CoreLogic Case-Shiller National Home Price Index, which will provide insights into US single-family home price trends over the past three months. Investors were also wary of ongoing uncertainty in Washington regarding government policy. ⚠️BREAKING: U.S. 10-YEAR TREASURY YIELD FALLS TO 4.337%, LOWEST SINCE MID-DECEMBER🇺🇸🇺🇸 pic.twitter.com/FKxfBG2kJt — Investing.com (@Investingcom) February 25, 2025 The President’s trade tariffs and a potential job cut program by the administration are causing investor jitters as they could potentially impact global growth and political alliances. Cryptocurrencies such as Bitcoin saw their prices drop as investors shifted to safer assets. Analysts point out that if the US retreats from global leadership too abruptly, it will negatively impact multinational corporations and global investors. The market is also eagerly awaiting Friday’s release of the Personal Consumption Expenditures (PCE) index, a key indicator of inflation. The PCE data will help shape the Federal Reserve’s decision regarding future interest rate cuts. The Fed has already cut rates twice in 2025, but it remains cautious about making further adjustments.