The U.S. Treasury yields moved lower on Tuesday as investors prepared for the Federal Reserve’s policy meeting and reassessed expectations for inflation and future interest rate increases.
The decline followed the announcement of a provisional peace framework between the United States and Iran, which could extend the ceasefire and reopen the Strait of Hormuz to global shipping.
President Donald Trump said at the G7 summit that the agreement framework has been completed and that the Strait of Hormuz is expected to fully reopen following a formal signing ceremony later this week.
Investors are also closely watching the Federal Reserve’s first policy meeting under Chairman Kevin Warsh. The report said markets broadly expect the central bank to leave interest rates unchanged.
According to UBS Global Wealth Management, a lasting resolution to the Middle East conflict could reduce pressure on central banks to tighten policy further. Housing and retail sales data due this week are also expected to influence market sentiment.
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Will the real Kevin Warsh please stand up? Ahead of his first Fed meeting, economists honestly don’t know what to expect. https://t.co/xXNZof8n4J
— MarketWatch (@MarketWatch) June 14, 2026
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