Treasury Yields Ease as Iran War Clouds Fed Path and Fuels Inflation Risks - Tekedia

U.S. Treasury yields moved lower early Tuesday as investors adjusted expectations for Federal Reserve policy.

The 10‑year yield fell to 4.321% around 4:37 a.m. ET, down 2 basis points.

Two‑year and 30‑year yields also slipped modestly.

Oil and crude prices have surged and the Strait of Hormuz has been constrained for weeks, disrupting energy supplies and complicating inflation and growth outlooks; U.S. gasoline topped $4 per gallon, first time since 2022 (AAA).

Markets largely price the Fed to hold rates this year though futures show some chance of further tightening into 2026, and Powell said longer‑term inflation expectations remain well anchored.