FX.co ★ US 10Y Yield Edges Higher on Hawkish Fed Outlook

The yield on the 10-year US Treasury note rose to around 4.28% on Thursday, approaching its highest level since August amid an increasingly hawkish Federal Reserve outlook. As expected, the central bank left the federal funds rate unchanged, citing uncertainty over the economic impact of the war involving Iran while emphasizing persistent inflation risks. The Fed signaled it will not cut rates until inflation shows clearer signs of easing, though it still projects one rate cut this year and another in 2027, in line with its December forecasts. Data released Wednesday showed US producer prices rose more than expected in February. Investors are now awaiting the latest weekly jobless claims for additional insight into labor market conditions. Meanwhile, oil prices extended their gains following attacks on energy infrastructure in the Middle East as the Iran conflict continues. In response, President Donald Trump temporarily waived the Jones Act to help lower the cost of transporting oil, gas, and other commodities within the United States.