FX.co ★ US 10-Year Yield Steady as Inflation Data Looms

The yield on the US 10-year Treasury note hovered around 4.77% on Tuesday, remaining close to three-year highs as investors awaited key US inflation data due later this week. The figures are expected to offer greater clarity on the interest rate outlook ahead of next week’s Federal Reserve policy meeting. Futures markets are now assigning roughly a 60% probability to a 25-basis-point rate hike, following stronger-than-expected labor market data released on Friday. The US economy added 162K jobs in August, far exceeding the consensus forecast of 56K, while employment figures for the previous two months were also revised slightly higher. In parallel, the European Central Bank and the Bank of Japan are also widely expected to raise interest rates this month. At the same time, investors continued to track developments in the Middle East, where renewed US-Iran clashes have pushed oil prices higher, reinforcing concerns about persistent inflationary pressures.