FX.co ★ US 10-Year Yield Edges Higher

The yield on the US 10-year Treasury note climbed to about 4.24% on Tuesday, rebounding from a sharp decline in the prior session, as investors continued to assess how the conflict in the Middle East and volatile oil prices might affect economic growth and inflation. Yields had retreated on Monday after a drop in oil prices eased inflation fears, following the safe transit of several tankers through the Strait of Hormuz. Treasury Secretary Scott Bessent also indicated that the US is allowing Iran to keep shipping crude through Hormuz, while President Donald Trump is seeking broader international support to safeguard commercial traffic in the waterway. At the same time, the Federal Reserve is widely expected to leave interest rates unchanged on Wednesday as policymakers contend with the uncertainties arising from the Iran war. Investors will be watching closely for the Fed’s assessment of the recent jump in energy prices and its implications for inflation and borrowing costs.