US 10-Year Yield Edges Higher
The yield on the US 10-year Treasury note climbed to around 4.54% on Wednesday after facing pressure in the previous session, as renewed hostilities in the Middle East that threatened a fragile ceasefire and the prospects for a lasting peace agreement heightened concerns about inflation and interest rates. The US launched “self-defense strikes” against Iran in response to the downing of an American helicopter, while Iranian Foreign Minister Abbas Araghchi warned that Iran’s armed forces would leave no attack or threat unanswered. Rising energy prices fueled by the regional conflict added to worries about persistent inflation and the possibility of further central bank rate hikes. Investors also awaited the latest US inflation data for additional clues on the Federal Reserve’s policy outlook, after stronger-than-expected jobs figures last week reinforced expectations of an interest rate increase before the end of the year.

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