US 10-Year Yield Steady as Fed Outlook Mulled

The yield on the US 10-year Treasury note held around 4.2% on Monday, stabilizing after a volatile week, as investors evaluated the Federal Reserve’s policy outlook amid rising geopolitical tensions and ongoing trade uncertainties.

Escalating conflict between Israel and Iran dominated headlines over the weekend, with both countries targeting energy infrastructure and driving oil prices higher.

These developments are expected to reduce the likelihood of near-term rate cuts by the Federal Reserve, which is widely anticipated to keep interest rates unchanged at its meeting on Wednesday.

Market pricing suggests no chance of a cut in July either, as policymakers navigate a complex backdrop of elevated energy prices, trade policy uncertainty, and geopolitical instability.

Traders also look ahead to manufacturing data on Monday, retail sales figures on Tuesday and weekly jobless claims on Wednesday for further insight into the Fed’s next moves.