The yield on the 10-year US Treasury note held steady around 4.39% on Monday, extending its sideways trading pattern for more than a week as investors weighed escalating geopolitical risks in the Middle East. Over the weekend, the US launched strikes on three Iranian nuclear sites, joining Israel’s ongoing conflict with Iran. Markets are now closely watching for a potential response from Tehran, including the risk of attacks on US personnel or a possible disruption of oil shipments through the Strait of Hormuz.
In addition to geopolitical concerns, investors are looking ahead to fresh economic data, including US existing home sales and PMI reports, for insights into the underlying strength of the economy. Last week, the Federal Reserve left interest rates unchanged and maintained a cautious, data-dependent stance. Fed Chair Jerome Powell warned that inflation could accelerate in the coming months, in part due to the inflationary impact of recently imposed tariffs by President Trump.
