Finance

Financial markets found relief as reports indicated potential progress toward a peace agreement between the United States and Iran. This optimism followed an earlier period of volatility where oil prices surged after planned military strikes were canceled, leading to a temporary decline in energy prices and a rebound in risk-on assets.

Recent economic reports show producer prices rose 6.5% year-over-year in May, reaching their highest level in several years. Coupled with consumer inflation accelerating to a three-year high of 4.2%, market participants now widely expect the Federal Reserve to maintain current interest rates through its upcoming June meeting, with some analysts forecasting potential hikes later this year.

The yield on the 10-year U.S. Treasury note remained near 4.53% as traders balanced signs of a resilient labor market against higher-than-anticipated inflation figures. While long-term yields have faced upward pressure due to geopolitical risks, recent treasury auctions have attracted solid demand, helping to anchor the curve despite hawkish central bank expectations.