10-Year Treasury Note futures rebounded strongly to open the trading week, erasing a large portion of last week's liquidations and climbing back toward the upper bound of their recent trading range. This safe-haven demand for U.S. Treasuries emerged as global yields pulled back from multi-year peaks established last week. A primary catalyst was the drop in WTI Crude Oil futures over the weekend following geopolitical developments in the Middle East, which directly softened near-term inflation anxieties. Consequently, the 10-Year Treasury yield declined by 8 bps to finish at 4.49%, breaching the 4.50% technical level. The entire yield curve shifted lower, with the 2-year yield also moderating toward 4.05%. Beyond energy dynamics, fixed-income market participants are closely monitoring upcoming Federal Reserve policy indications and critical inflation data releases to guide near-term direction.
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