FX.co ★ US 10-Year Yield Falls on Mideast Ceasefire

The yield on the US 10-year Treasury note slipped to around 4.25% on Wednesday, marking its lowest level in nearly three weeks. The move came after President Donald Trump postponed by two weeks his threatened strikes on Iranian civilian infrastructure, announcing what he termed a “double-sided ceasefire,” conditional on Iran reopening the Strait of Hormuz. Trump said the US had received a 10-point proposal from Iran that he characterized as a “workable basis for negotiations,” with the two-week window intended to allow time to finalize and implement a potential agreement.

In parallel, Iran has agreed to reopen the critical waterway for two weeks on the condition that all attacks cease, and Israel has reportedly accepted the ceasefire arrangement. On the data front, US consumer inflation expectations edged higher in March, while transportation costs in the logistics sector registered a notable increase. Looking ahead, Friday’s release of US March CPI data is expected to offer further clarity on price pressures that may be connected to the ongoing conflict.