US 10Y Treasury Yield Holds Near 1-Month High

The yield on the US 10-year Treasury note remained near a one-month high of around 4.55% on Wednesday after climbing sharply in the previous session, as renewed US air strikes on Iran drove oil prices higher, fueling inflation concerns and reinforcing expectations of interest rate hikes. The latest military action followed recent attacks on ships transiting the Strait of Hormuz, while Washington also revoked a waiver that had allowed Iran to sell crude on global markets. Meanwhile, investors awaited the minutes of the Federal Reserve’s June meeting for additional insight into the policy outlook after the central bank struck a more hawkish tone at its June meeting. Markets are now pricing in roughly a 50% chance of a Fed rate increase in September, up from around 46% a day earlier. Separately, data released on Tuesday showed the US trade deficit widened to $77.6 billion in May, the largest gap since March 2025.

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