US Treasuries held steady as investors digested the Federal Reserve's preferred inflation gauge showing persistent price pressures. The Iran situation complicated market dynamics, with oil prices rebounding sharply after the US military action in the region, creating uncertainty for energy markets and broader economic outlook.

The Fed's inflation readings reveal underlying price challenges that existed before the geopolitical flare-up. Market participants now face the dual challenge of elevated inflation data combined with rising energy costs that could further complicate the central bank's monetary policy decisions in the coming months.

Investors showed resilience despite these conflicting pressures, with Treasury prices remaining relatively unchanged. This stability suggests markets are taking a measured approach as they assess how the combination of inflationary trends and geopolitical risk might evolve in the near term.