US Treasury yields and the dollar were largely unchanged on Tuesday after May
CPI broadly matched expectations and amid renewed Iran tensions. Headline CPI
rose to 4.2% YoY in May from 3.8% in April; core CPI excluding food and energy
ticked up to 2.9% from 2.8%. Markets expect the Fed to hold rates next week but
assign high odds to further hikes thereafter. The US launched strikes on Iran;
Trump said Tehran’s negotiations took too long. DXY ~99.90; 10-year yield
4.526%; 2-year yield 4.127%, little changed from Monday.
