The yield on the US 10-year Treasury note held around 4.11% on Tuesday after reaching as high as 4.21% in the previous session, as retreating oil prices eased fears of resurgent inflation. The US oil benchmark fell back below $90 a barrel after President Donald Trump signaled that the Iran war is nearing its end, while unveiling plans to keep oil prices down. G7 finance ministers also said the group “stands ready” to release oil from strategic reserves if needed, although no action has been taken yet. Easing inflation concerns revived expectations that the Federal Reserve could cut interest rates in July and September, with markets pricing in around two 25 basis point reductions this year. Looking ahead, investors await the February CPI report on Wednesday and January’s PCE price index on Friday for further clues on inflation trends, though neither is expected to fully reflect the impact of the Iran war.
