10-Year Treasury yields continued their downward trajectory, testing a two-week low of 4.44% before settling at 4.47% to mark their second consecutive close below 4.5%. The primary catalyst remains the energy market, where a decline in oil prices below $90 a barrel has alleviated immediate inflationary pressures and pulled yields lower. This shifting environment has also led to a drop in market volatility, with the CME Group CVOL index retreating toward its month-to-date lows. Looking forward, market participants are anticipating a heavy economic calendar on Thursday, including weekly unemployment claims, durable goods data, and the crucial PCE price index release, followed by a 7-Year note auction. Geopolitical developments in the Middle East and ongoing ceasefire discussions will also remain central to market direction.
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