FX.co ★ Treasury Yield Holds Near Lows Amid US-Iran Negotiations

The yield on the 10-year US Treasury note hovered near recent lows around 4.3% on Tuesday, as renewed optimism over potential US–Iran negotiations helped ease inflation concerns. Although talks over the weekend ended without an agreement—prompting President Donald Trump to announce a blockade on Iranian oil shipments—he later indicated that Tehran had made contact and signaled a willingness to resume discussions.

Expectations for a possible long-term ceasefire and the reopening of the Strait of Hormuz put downward pressure on oil prices, reducing inflationary risks and dampening bets on a more aggressive Federal Reserve policy stance.

On the data front, US producer prices rose 0.5% in March, undershooting the forecast 1.1% gain. Separately, ADP figures showed that the US economy added 39,250 jobs in the week ending March 28, marking a fourth consecutive week of solid employment growth.