15.04.202602:22:21UTC+00US 10-Year Yield Holds Decline

The yield on the 10-year US Treasury note hovered around 4.25% on Wednesday after declining for two consecutive sessions, as renewed hopes for a diplomatic resolution to the Middle East conflict eased inflation fears. The US and Iran are reportedly preparing for a second round of peace talks before the current two-week ceasefire expires, even as elevated tensions in the Strait of Hormuz continue to heighten global energy risks.

Oil prices fell sharply, further tempering concerns about inflationary pressures and the need for additional monetary tightening. The Federal Reserve is now widely expected to keep interest rates unchanged for the rest of the year, with Chicago Fed President Austan Goolsbee suggesting that rate cuts could be postponed until 2027, depending on how long oil prices remain elevated.

Investors are now turning their attention to upcoming economic releases, including the import and export price indexes, the NY Empire State Manufacturing Index, and the NAHB Housing Market Index.