FX.co ★ US 10-Year Yield Holds Advance

The yield on the US 10-year Treasury note held above 4.3% on Friday after rising for two straight sessions, as persistently elevated oil prices kept inflation risks in focus even while growth concerns weighed on sentiment. Markets have now shifted to expecting the Federal Reserve to keep interest rates unchanged for the rest of the year, a reversal from earlier forecasts that had anticipated two cuts by year-end. New York Fed President John Williams noted that the conflict in the Middle East is already adding to inflationary pressures, while emphasizing that the central bank remains well positioned to respond to evolving economic conditions. Meanwhile, President Donald Trump voiced confidence that the war with Iran will end soon, saying Tehran had agreed to conditions including abandoning its nuclear ambitions and reopening the Strait of Hormuz. Trump also announced a 10-day ceasefire between Israel and Lebanon, which could help lay the groundwork for further US-Iran negotiations.