U.S. stocks opened lower Wednesday, increasing pressure ahead of the Federal
Reserve's afternoon rate decision, after oil jumped when Trump told Fox News the
U.S. would strike Iran strongly in response to recent attacks in the Middle
East. The 10-year Treasury yield rose to 4.62%, near this year's high; the
2-year climbed about 3bp to 4.30%, also close to its peak. Traders broadly want
the Fed to signal the Iran-driven oil shock is likely temporary and that it will
not rush to hike again this year; some say one additional hike would be
reasonable to demonstrate the Fed's anti-inflation resolve and help calm the
long end of the curve.
