10-Year T-Note Yield Stabilizes at 4.71%, US Yield Remains High, Gold Reaches $4,575

The yield on the 10-year U.S. Treasury Note stands at 4.71% as of August 20, 2026, unchanged from the previous session, according to data published by the St. Louis Federal Reserve (FRED). This level, among the highest in the past two decades, continues to shape global bond markets and influence investment decisions for French retail investors.

10-Year T-Note at 4.71%: A Stable Yield That Piques Investor Interest

The 10-year T-Note is the U.S. government bond with a 10-year maturity. It serves as the global benchmark for long-term interest rates. At 4.71%, this yield reflects investor expectations regarding U.S. economic growth and inflation. It forms the basis for calculating mortgage rates and corporate bonds worldwide. For a French investor, this figure is crucial: it directly impacts the performance of euro-denominated life insurance funds, which partially replicate U.S. Treasury yields.

The stability of this yield, with no change from the previous session, suggests that bond markets are in a balanced phase. According to available information, no major movements were recorded, indicating that market participants are digesting recent economic data without abrupt adjustments to their positions. For French savers, this means that government bond yields remain attractive compared to previous years, but they are no longer increasing.

Short-Term Rates at 3.70%: Fed Maintains Restrictive Policy

The three-month Fed Funds proxy rate, which measures the cost of short-term financing in the U.S., stands at 3.70%, unchanged from previous levels. This rate is directly linked to the monetary policy decisions of the U.S. Federal Reserve (Fed). It has remained at this level, indicating that the Fed did not alter its benchmark rates during its latest meeting, according to available information. This short-term rate is 101 basis points below the long-term rate (4.71% - 3.70%), a normal configuration known as a positive yield curve, signaling that investors expect future economic growth.

For French retail investors, this level of short-term rates directly impacts regulated savings products like the Livret A, whose rate is partially set based on interbank rates. However, the current Livret A rate in France is 3%, according to available information, which remains lower than U.S. rates. This difference may encourage diversification into dollar-denominated assets, but it also entails currency exchange risk.

Euro/Dollar at 1.17: A Stable Exchange Rate That Supports Purchasing Power

The euro/dollar exchange rate is set at 1.17, with no change from previous levels. This means that one euro can be exchanged for 1.17 dollars. This stability is significant for French investors holding U.S. assets: it avoids currency fluctuations that could erode returns. For French export companies, a stable euro against the dollar preserves the competitiveness of their products on the U.S. market.

For French savers, this exchange rate influences the real return on investments in U.S. stocks or dollar-denominated bonds. For example, if the S&P 500 rises by 5% over a year, but the euro appreciates by 5% against the dollar, the gain for a French investor would be zero in euros. Currently, the stability of the exchange rate reduces this risk, according to available information.

Gold at $4,575.40/oz: The Yellow Metal Continues to Set New Records

The price of gold stands at $4,575.40 per ounce, unchanged for the session. This historical level reflects the demand for safe-haven assets in an environment of elevated real yields and uncertainty.