US 10-Year Yield Holds Firm
The yield on the 10-year US Treasury note held around 4.57% on Tuesday, hovering near a two-week high as stronger-than-expected US jobs data reinforced expectations of a Federal Reserve interest rate hike by year-end. Markets are now pricing in roughly a 70% chance of a quarter-point rate increase in December, though the central bank is still widely expected to leave rates unchanged later this month. Investors are now turning their attention to US CPI and PPI data due later this week for further clues on the Fed’s policy path. Meanwhile, Iran and Israel agreed to halt attacks against each other, weighing on oil prices and easing inflation concerns. President Donald Trump also said both sides were seeking an immediate ceasefire and that final negotiations were moving forward.
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