US 10-Year Yield Hits 1-Month Low
The yield on the 10-year US Treasury note declined to around 4.43% on Monday, reaching its lowest level in a month after the US and Iran reached a peace agreement that would reopen the Strait of Hormuz. The development sent oil prices to a two-month low, easing concerns over inflationary pressures and reducing expectations of tighter monetary policy. The agreement is due to be signed in Switzerland on June 19 and reportedly includes the removal of blockades, sanctions relief for Iran, and the dismantling of Tehran’s nuclear program. Investors are now focused on the US Federal Reserve’s first policy meeting under new chair Kevin Warsh, where policymakers are widely expected to leave interest rates unchanged. Elsewhere, the Reserve Bank of Australia and the Bank of England are also expected to keep policy settings intact this week, while the Bank of Japan is anticipated to raise rates to support the yen.
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