The yield on the 10-year US Treasury note fell to 4.36% on Tuesday as markets assessed the outlook on US borrowing against an uncertain macroeconomic backdrop. Primary dealers for Treasuries expect the US to refrain from increasing auction sizes for the incoming third quarter, in line with their earlier estimates, amid close scrutiny on US borrowing following debt-limit volatility and an expansionary fiscal bill passed by US President Trump. In the meantime, the US and the EU agreed to loose terms on future trade, but investors stressed uncertainty over disagreements as the counterparties start to discuss finer details to the deal. Wider tariffs, including higher rates on other major US trading partners, are set to be enforced on Friday. In the meantime, the Fed is expected to hold interest rates unchanged on Wednesday as the pro-inflationary risks from tariffs coincide with evidence of a robust economy, although rate futures reflect bets of two rate cuts this year.