FX.co ★ Treasury Yields Move Higher

The yield on the US 10-year Treasury note climbed to 4.2% on Wednesday, after briefly dipping to 4.17% earlier in the session, as worries about persistent inflationary pressures intensified. Oil prices rose again after Iran reported attacks on some of its energy facilities, further stoking inflation concerns. At the same time, producer prices for February came in hotter than expected, with headline PPI up 0.7% month-on-month and core PPI advancing 0.5%, both exceeding forecasts of 0.3%. The figures underscored that inflation remains firm even beyond energy-related factors. Investors are now focused on the Federal Reserve’s policy decision later today. While the fed funds rate is widely expected to remain unchanged, markets will be scrutinizing the updated economic projections and Chair Powell’s remarks for clues on how escalating tensions with Iran might shape the policy outlook.