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%, lit

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.