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U.S.-Iran Strikes Keep Treasury Yields Muted

The 10-year Treasury yield remained near 4.47%, while the two-year yield edged slightly higher, reflecting expectations around future Federal Reserve policy.

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Treasury yields were largely unchanged on Monday as investors weighed renewed military exchanges between the United States and Iran while awaiting key inflation data expected later this week.

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The 10-year Treasury yield remained near 4.47%, while the two-year yield edged slightly higher, reflecting expectations around future Federal Reserve policy. According to the report, markets remained cautious after fresh hostilities cast doubt on the interim U.S.-Iran ceasefire reached last month.

The report said an Iranian strike on a commercial vessel prompted renewed U.S. military action, followed by Iranian attacks on American bases in Kuwait, Bahrain, Jordan, Oman and Qatar. Oil prices climbed in response, with Brent crude and West Texas Intermediate futures both posting gains in early trading.

Investors are now focused on Tuesday's core inflation report and Federal Reserve Chair Kevin Warsh's first congressional appearance. Consumer sentiment data due later this week is also expected to provide insight into household spending and the broader U.S. economic outlook.

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