FX.co ★ US 10-Year Yield Steadies Ahead of Fed Meeting

The yield on the 10-year US Treasury note hovered near 4.47% on Tuesday, stabilizing after a decline in the previous session, as investors shifted their attention from the announced US–Iran peace agreement to the Federal Reserve’s upcoming policy meeting. The central bank is widely expected to leave interest rates unchanged at its first meeting under new chair Kevin Warsh. However, policymakers face a complex backdrop: recent inflation readings have exceeded expectations, with the conflict involving Iran having driven energy prices higher.

Markets were also looking ahead to policy decisions from central banks in Japan, Australia, the UK, and other major economies later in the week. On Monday, Treasury yields fell after President Donald Trump announced that the US had reached a peace agreement with Iran that would restore access through the Strait of Hormuz, easing concerns about inflation and the prospect of further rate hikes.