The yield on the US 10-year Treasury note rose slightly to 4.18% on Wednesday, marking a second consecutive increase and reaching its highest level in about a month. Traders continue to monitor the war in Iran and its impact on oil markets. Oil saw brief relief amid reports that countries are preparing to release reserves, but prices resumed their rise, keeping concerns about an energy-driven inflation spike alive. On the data front, February inflation came in line with forecasts, showing stable but above-target CPI. However, the full effect of the energy surge from the conflict is yet to be reflected. The Fed is widely expected to keep the federal funds rate steady next week, with traders anticipating only one 25bps cut, possibly in September.
