U.S. Treasury Yields Seen Elevated, Fed Pricing Hawkish

Dow Jones13:52

0552 GMT - U.S. Treasury yields and market pricing the probability of Federal Reserve tightening remain elevated relative to pre-Iran War levels, even though crude oil prices have unwound most of the initial increases after the war began, say Eurizon SLJ Capital's Stephen Jen and Joana Freire in a note. "However, the market seems to have the view that U.S. bond yields could be permanently higher, reflecting inflation and other worries," they say. Risks to U.S. yields are biased to the downside, and so are those for the dollar, according to them. "We believe the Fed has not completed its easing cycle and ultimately will need to move the FFR [fed funds rate] to neutral," they say, anticipating that the Fed's next move is still a cut. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 10, 2026 01:52 ET (05:52 GMT)

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