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

The yield on the US 10-year Treasury note remained around 4.3% on Wednesday, maintaining near a seven-week low as investors assessed the potential direction of Federal Reserve policy. On Tuesday, Fed Chair Jerome Powell remarked that "many paths are possible," leaving room for a potential rate reduction in July. While emphasizing a cautious stance, Powell stated that the Fed would act swiftly should there be indications of labor market weakness. Additionally, other Fed officials, such as Governors Waller and Bowman, expressed a readiness to consider policy easing in the near future. Concurrently, the US-brokered ceasefire between Israel and Iran appeared stable despite minor incidents, leading to a sharp decline in oil prices from recent peaks. However, intelligence reports indicated that US missile strikes did not fully neutralize Iran's critical nuclear facilities, only temporarily hindering Tehran's nuclear program for a few months.