The yield on the US 10-year Treasury note was little changed around 4.88% on Tuesday, holding near two-month lows as investors awaited the October CPI report, with both headline and core inflation expected to ease amid stabilizing energy prices. Richmond Fed President Tom Barkin said on Monday that the Federal Reserve should approach monetary policy adjustments “with care,” as persistent inflation remains its primary concern. Markets are currently pricing in an 84% probability of a Fed rate hike in December, up considerably from approximately 74% a week earlier following last week’s stronger-than-expected employment data. Meanwhile, inflationary concerns eased as oil prices extended their decline amid growing optimism over a potential US-Iran peace agreement. President Donald Trump expressed confidence that the conflict in Iran was nearing an end following discussions with Qatar’s prime minister.
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