The yield on the US 10-year Treasury note remained above 4.3% on Friday after advancing for two consecutive sessions, as still-elevated oil prices kept inflation risks in focus even as growth concerns tempered sentiment. Markets have now shifted to pricing in the Federal Reserve holding interest rates steady through the year, compared with earlier expectations of two rate cuts by year-end. Fed Bank of New York President John Williams also said the Middle East conflict is already contributing to inflationary pressures, while noting the central bank remains well positioned to respond to changing economic conditions. Meanwhile, President Donald Trump expressed confidence that the war with Iran will end soon, saying Tehran had agreed to terms including abandoning nuclear ambitions and reopening the Strait of Hormuz. Trump also announced a 10-day ceasefire between Israel and Lebanon, which could support further US-Iran talks.
