FX.co ★ US 10Y Yield Steadies Ahead of CPI Data

The yield on the 10-year US Treasury note hovered around 4.14% on Wednesday after sharp swings earlier in the week, as investors awaited a key US inflation report that could shed light on recent price dynamics, although it is not expected to reflect the impact of the war in Iran. Market participants also tracked developments in the Middle East amid mixed signals from the Trump administration. President Donald Trump suggested the conflict could end soon under mounting market pressure, while senior officials stated that military operations were intensifying and that meaningful diplomatic talks remained unlikely. Iran’s Revolutionary Guards dismissed Trump’s remarks, vowing that the blockade would continue until US and Israeli attacks stop. At the same time, oil prices extended their decline following reports that the IEA had proposed the largest release of oil reserves in its history to help stabilize global energy markets.