FX.co ★ US 10-Year Yield Steadies

The yield on the benchmark 10-year US Treasury note held near 4.45% on Wednesday, as investors turned cautious amid stalled US-Iran peace talks and renewed tensions in the Middle East. According to US Central Command, Iran launched ballistic missiles toward neighboring countries, prompting US forces to carry out strikes on Qeshm Island. The protracted conflict has helped keep energy prices elevated, fueling concerns that inflationary pressures could persist and reinforcing expectations that the Federal Reserve may maintain higher interest rates for longer. Those expectations were further supported by data released on Tuesday showing that US job openings rose in April to their highest level in nearly two years. Investors now await private-sector payroll figures due later on Wednesday, with particular attention on Friday’s nonfarm payrolls report for additional policy guidance.