The yield on the US 10-year Treasury note slipped to around 4.25% on Tuesday, reversing the previous session’s gains as investors weighed prospects for a longer-term peace agreement between the United States and Iran—an outcome that could help moderate inflation expectations. Vice President JD Vance is expected to once again lead the US delegation in Pakistan, while Tehran is now reportedly sending its own team after earlier indications it would not take part in further talks.
Oil prices declined, easing concerns about inflation and tempering expectations for more hawkish central bank policy. The Federal Reserve is widely expected to leave its policy rate unchanged this month and to remain on hold through 2026. Investors are also closely watching Tuesday’s Senate confirmation hearing for Kevin Warsh as the next Fed Chair; markets generally see him as more dovish than current Chair Jerome Powell, whose term ends in May.
