FX.co ★ US 10-Year Treasury Yield Near 1-Month High

The yield on the US 10-year Treasury note inched up to 4.35% on Tuesday, its highest level in about a month, as persistent tensions in the Middle East and climbing oil prices reignited concerns about a possible inflationary spiral. The White House said President Trump would address Iran’s proposal to reopen the Strait of Hormuz “very soon,” though the initiative sidesteps the nuclear issue until hostilities in the Gulf ease. Meanwhile, the Federal Reserve’s two-day policy meeting begins today. Policymakers are widely expected to leave the federal funds rate unchanged, with no further moves anticipated for the rest of the year. The ECB and the BoE are also due to deliver policy decisions, with money markets pricing in possible rate hikes as early as June. In Asia, the BoJ kept rates on hold, and Governor Ueda offered little clarity on the timing of any future increases.