US Treasury yields fall across the board, the dollar comes under pressure, and a diplomatic breakthrough in the Middle East fuels cautious optimism
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⑴ Yields on US Treasury bonds of all maturities fell across the board on Tuesday, with the US Dollar Index dropping 0.1% to 99.09. DHF Capital S.A CEO Bas Kooijman stated that investors remain optimistic that diplomatic breakthroughs in the Middle East could eventually lead to the reopening of the Strait of Hormuz and ease inflationary pressures related to energy prices, which drove yields to extend the previous trading day's decline.⑵ Data showed the 10-year US Treasury yield fell by 2.8 basis points to 4.463%. The market remains cautiously weighing the prospects for a peace agreement, with no signs of excessive optimism or buying momentum.⑶ Currently, the market's focus has shifted to Thursday's release of the Personal Consumption Expenditures Price Index and Gross Domestic Product data. Kooijman pointed out that these two data releases could serve as important catalysts for movements in the dollar and US Treasury yields; if inflation readings exceed expectations or if there are changes in economic growth data, it could reverse the current trend of falling yields.
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