US 10-Year Yield Holds at 2-Month High

The yield on the US 10-year Treasury note held around 4.63% on Wednesday, hovering at two-month highs as ongoing hostilities between the US and Iran lifted oil prices, heightening concerns over inflation and interest rates. President Donald Trump also downplayed the likelihood of near-term talks with Iran, while Iran-backed Houthi rebels in Yemen disrupted shipping through the Red Sea. Meanwhile, a series of attacks on the Caspian Pipeline Consortium terminal along Russia’s Black Sea coast added to supply concerns. On the economic front, ADP data showed US private employers added an average of 16,500 jobs per week over the four weeks ending July 4, down from an average weekly gain of 19,250 in the prior four-week period, marking a fourth straight slowdown in hiring. Markets widely expect the Federal Reserve to leave interest rates unchanged at next week’s meeting, while pricing in more than a 55% chance of a rate hike in September.

