FX.co ★ US 10-Year Yield Hits 1-Month Low

The yield on the 10-year US Treasury note fell to around 4.43% on Monday, its lowest level in a month, after the United States and Iran reached a peace agreement that will reopen the Strait of Hormuz. The news pushed oil prices to a two-month low, easing worries about inflationary pressures and diminishing expectations of further monetary tightening.

The agreement, scheduled to be signed in Switzerland on June 19, reportedly includes the removal of blockades, sanctions relief for Iran, and the dismantling of Tehran’s nuclear program.

Investors are now turning their attention to the US Federal Reserve’s first policy meeting under its new chair, Kevin Warsh, where policymakers are widely expected to leave interest rates unchanged. Elsewhere, the Reserve Bank of Australia and the Bank of England are also expected to keep policy settings steady this week, while the Bank of Japan is anticipated to raise rates in an effort to support the yen.