FX.co ★ US 10Y Yield Holds Gains on Strong Data

The yield on the 10-year US Treasury note hovered around 4.46% on Wednesday, after rising about 10 basis points in the previous session, as evidence of a resilient economy bolstered expectations for a more hawkish Federal Reserve. Data released on Tuesday showed that US job openings climbed to a two-year high in May, signaling that labor demand remains robust despite indications of slower hiring.

Futures markets are now pricing in at least one Fed rate increase this year, with the first move potentially coming as soon as September. Investors are looking ahead to the upcoming US monthly jobs report for additional insight into labor market strength and the likely path of Fed policy.

At the same time, markets continued to track US-Iran peace talks in Qatar, amid hopes for a durable ceasefire agreement, though the two sides are not expected to engage in direct negotiations.