The yield on the US 10-year Treasury note rose to around 4.24% on Tuesday after a sharp decline in the previous session, as investors continued to gauge the impact of the Middle East conflict and volatile oil prices on the economy and inflation. Treasury yields had pulled back on Monday as lower oil prices eased inflation concerns following the safe passage of several tankers through the Strait of Hormuz. Treasury Secretary Scott Bessent also said the US is allowing Iran to continue shipping crude via Hormuz, while President Donald Trump is seeking support from other countries to safeguard commercial activity in the waterway. Meanwhile, the Federal Reserve is widely expected to hold interest rates steady on Wednesday as policymakers navigate uncertainties stemming from the Iran war. Investors will closely watch the central bank’s assessment of the recent surge in energy prices and its implications for inflation and borrowing costs.
