The yield on the 10-year US Treasury note rose 2 basis points to around 4.35% on Thursday, as investors tracked developments in the Middle East amid growing uncertainty over efforts to end the war involving Iran. The White House said negotiations remain ongoing, with the Trump administration reportedly sending a 15-point proposal to Tehran through Pakistan in an attempt to resolve the conflict. Senior Iranian officials are reviewing the plan but have signaled no intention of entering direct talks with Washington. Instead, Tehran said it would reject a US ceasefire offer and countered with a five-point proposal that would give it control over the Strait of Hormuz.
Disruptions stemming from the conflict have driven energy prices higher, stoking inflation concerns and bolstering expectations that the Federal Reserve will keep interest rates unchanged for the rest of the year. Investors are now looking to the latest weekly jobless claims, due Thursday, for fresh insight into US labor market conditions.