FX.co ★ US 10-Year Treasury Yield Drops to Near 3-Week Low

The yield on the US 10-year Treasury note fell to 4.3% on Tuesday, its lowest level in nearly three weeks, as investors moved into government bonds amid heightened geopolitical uncertainty. The decline followed a volatile morning in which yields briefly neared 4.37%, before President Trump warned of devastating attacks if his 8 p.m. deadline for Iran to reopen the Strait of Hormuz was not met. Market sentiment shifted late in the session after Pakistan’s Prime Minister proposed a two-week extension to the deadline, creating a brief window for diplomatic mediation. Despite this temporary easing in yields, inflation concerns remain elevated, with Bank of America forecasting a 0.9% increase in March headline CPI, driven by the energy supply shock. Looking ahead, the release of US March CPI data on Friday is expected to provide further insight into price pressures potentially linked to the ongoing conflict.