U.S. Treasury yields fell on Friday as energy prices fell despite renewed geopolitical tensions in the Middle East, but traders continued to assess the impact of new inflation data on the U.S. economy.
yield 10 year treasury The note, a key benchmark for mortgages, auto loans and credit card debt, fell more than 1 basis point to 4.3725% in early trading.
yield of 2 years treasury The note, which closely tracks the Federal Reserve’s short-term interest rate decisions, fell more than 3 basis points to 4.0860%.
of 30 year treasury The yield, which traditionally fluctuates in response to geopolitical events, was flat at 4.8532%.
One basis point is equal to 0.01%, or 1/100th of 1%, and yield and price are inversely proportional to each other.
U.S. Treasury yields ended flat in trading Thursday after annual core inflation hit 3.4% in May, the highest level since October 2023, and rose 0.3% for the month. The increase in the Fed’s preferred inflation measure comes amid an increasingly hawkish tone on inflation under new Chairman Kevin Warsh.
Separately, PCE for all items also increased at a seasonally adjusted annual rate of 4.1%, the highest level since April 2023.
Oil prices fell early Friday as investors closely watched new tensions in the Middle East.
us west texas intermediate Futures fell 2.5% to $70.11. brent crude oilthe international price benchmark was last seen at $73.38, a decline of 2.5%.
U.S. officials said Iran was responsible for the attack on a Singapore-flagged cargo ship near the Strait of Hormuz, but separately said Iraq was considering withdrawing from OPEC amid a dispute over oil production quotas.
