The yield on the US 10-year Treasury note hovered around 4.3% on Wednesday, holding near a seven-week low as investors weighed the outlook for Federal Reserve policy. In remarks on Tuesday, Fed Chair Jerome Powell said “many paths are possible,” keeping the door open for a potential rate cut in July. He emphasized a cautious approach but noted the Fed would move swiftly if signs of labor market weakness emerge.
Other officials, including Governors Waller and Bowman, also signaled openness to easing policy soon. Meanwhile, the US-brokered ceasefire between Israel and Iran appeared to be holding despite minor flare-ups, with oil prices retreating sharply from recent highs. However, intelligence reports suggested that US missile strikes did not completely destroy Iran’s key nuclear sites, only setting back Tehran’s nuclear program by a few months.
