FX.co ★ US 10-Year Yield Hits Near 2-Week Low

The yield on the US 10-year Treasury note fell to around 4.48% on Wednesday, its lowest level in nearly two weeks, as investors further scaled back expectations for near-term Federal Reserve interest rate hikes amid signs of progress toward a US–Iran peace agreement. President Donald Trump said talks to extend a ceasefire and reopen the Strait of Hormuz are ongoing, while US Secretary of State Marco Rubio warned that any final agreement could still take several more days to conclude. Still, renewed hostilities in the Middle East continued to weigh on sentiment, with the US military reporting that it conducted self-defense strikes in southern Iran, and Iran’s Revolutionary Guard claiming it targeted an F-35 fighter jet and multiple drones after they allegedly entered Iranian airspace. Investors are now looking ahead to upcoming PCE inflation data for further insight into the Federal Reserve’s policy outlook.