US 10-Year Yield Hits Near 2-Week Low
The yield on the US 10-year Treasury note declined to around 4.48% on Wednesday, reaching its lowest level in nearly two weeks as investors further reduced expectations for near-term Federal Reserve interest rate hikes amid signs of progress toward a US-Iran peace agreement. President Donald Trump said negotiations to extend a ceasefire and reopen the Strait of Hormuz are ongoing, while US Secretary of State Marco Rubio cautioned that any final deal could still require several more days to finalize. However, renewed hostilities in the Middle East continued to cloud the outlook, with the US military saying it carried out self-defense strikes in southern Iran, while Iran’s Revolutionary Guard claimed it targeted an F-35 fighter jet and multiple drones after they allegedly entered Iranian airspace. Investors are now awaiting upcoming PCE inflation data for additional insight into the Federal Reserve’s future policy trajectory.
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