FX.co ★ US 10-Year Yield Holds Near 7-Week Low

On Tuesday, the yield on the US 10-year Treasury note held steady at 4.35%, marking a recent seven-week low. This steadiness comes as investors evaluate the viability of the ceasefire between Iran and Israel and its potential effects on global energy prices. Renewed hostilities between the nations have raised concerns over the recent de-escalation achieved on Monday when restrained actions between Iranian and US forces, alongside commitments to avoid retaliation, had initially eased tensions. Furthermore, oil and fuel tankers have continued to move unimpeded through the Persian Gulf, indicating that the conflict may not significantly disrupt global energy supplies or reignite inflationary pressures, thereby stabilizing US long-term yields despite reduced demand for safe-haven assets. On the monetary policy landscape, some members of the Federal Open Market Committee (FOMC) suggested that a rate cut in July might be warranted. However, Federal Reserve Chair Jerome Powell emphasized that the Fed would await a clearer picture regarding tariffs before making any policy adjustments.