FX.co ★ US 10Y Yield Holds Steady

The yield on the US 10-year Treasury note held near 4.55% on Thursday as investors monitored geopolitical developments in the Middle East and awaited new US economic data for further insight into the Federal Reserve’s policy path. The US military announced it had completed its latest strikes on Iran, raising hopes that peace talks could resume and easing some concerns about renewed inflationary pressures.

At the same time, US consumer inflation accelerated in May to its fastest pace in more than three years, driven largely by surging energy costs, though the figures were broadly in line with market expectations. In response, traders slightly pared back their projections for additional Fed rate hikes this year, even as a quarter-point increase in December remains fully priced in. Market participants are now focused on upcoming producer price data and weekly jobless claims for further signals on the Fed’s next steps.