16.04.202602:47:56UTC+00US 10Y Yield Steadies as Iran Talks Take Focus

The yield on the US 10-year Treasury note held near 4.27% on Thursday, stabilizing after heightened volatility earlier in the week amid rising optimism that the United States and Iran could reach a diplomatic agreement to end the war. President Donald Trump stated that the seven-week conflict was “close to over,” while the White House voiced confidence in a potential deal and indicated that further in-person talks were likely to be held again in Pakistan.

Reports also suggested that Tehran might allow ships free passage via the Omani side of the Strait of Hormuz if an agreement is concluded that would avert renewed escalation. Earlier in the week, Treasury yields had retreated as falling energy prices eased inflation worries and reduced expectations of additional monetary tightening by the central bank. The Federal Reserve is widely anticipated to leave interest rates unchanged this month and possibly for the rest of the year.