The yield on the US 10-year Treasury note fell to around 4.25% on Wednesday, hitting an almost three-week low after President Donald Trump delayed his threat to strike Iranian civilian infrastructure by two weeks in what he called a “double-sided ceasefire,” contingent on Iran reopening the Strait of Hormuz. Trump also said the US had received a 10-point proposal from Iran that he described as a “workable basis for negotiations,” with the two-week window allowing the potential agreement to be finalized and implemented. Additionally, Iran has agreed to reopen the vital waterway for two weeks provided all attacks are halted, while Israel has reportedly assented to the ceasefire. On the data front, US consumer inflation expectations rose in March, and transportation costs in the logistics sector saw a notable increase. Looking ahead, the release of US March CPI data on Friday is expected to provide further insight into price pressures potentially linked to the ongoing conflict.
