USA: Treasury Yields Edge Down.

The yield on the US 10-year Treasury note fell to 4.54% on Tuesday, retreating from near three-week highs reached in the previous session. The decline was supported by lower oil prices after Israel and Iran agreed to halt attacks, while President Trump signalled that a deal with Tehran could be reached within days. Investors are also focused on Wednesday’s US CPI report for fresh clues on the inflation outlook. Recent economic indicators have continued to point to a resilient US economy and labour market, following last week's stronger-than-expected jobs report. Also, existing home sales increased more than anticipated, while the trade deficit narrowed as exports climbed to a record high. Markets continue to price an increase in borrowing costs by the Fed this year, with the probability of a rate hike as early as October currently estimated at around 51%. Meanwhile, the yield on the more policy-sensitive 2-year Treasury note fell by 2bps to 4.15%.