U.S. Treasury yields remained mostly steady on Tuesday as investors awaited further guidance from Federal Reserve officials on the economy, inflation, and interest rate outlook. The benchmark 10-year yield hovered around 4.97%, the 2-year near 4.76%, and the 30-year about 5.30%.
Market caution reflected a wait-and-see stance ahead of Federal Reserve Governor Michael S. Barr's upcoming remarks. Traders sought clearer signals on monetary policy and economic conditions.
Investor focus also centered on Chicago Fed President Austan Goolsbee's concerns about persistent service-sector inflation and the potential impact of rapid AI data-center construction boosting demand. Goolsbee warned that if demand overheats, the Fed would need to react. He noted that inflation peak expectations have been repeatedly delayed, with forecasts now extending toward 2027.
Meanwhile, oil markets stayed sensitive to developments involving Iran and the Strait of Hormuz. Brent crude traded near $100 a barrel and WTI around $96, after prices earlier fell amid reports Iran might reopen the Strait within seven days and Saudi Arabia could resume its East-West pipeline. U.S. pressure on Tehran also increased, with Treasury Secretary Scott Bessent announcing Iranian airlines would be shut down from Wednesday.
