FX.co ★ US 10-Year Yield Holds Decline

The yield on the US 10-year Treasury note hovered around 4.94% on Friday, after falling nearly 10 basis points in the previous session and pulling back from 19-year highs as easing oil prices tempered inflation concerns. Crude declined for a third straight session after Saudi Arabia moved to restore flows through its East–West pipeline, while President Donald Trump is expected to meet with Gulf leaders next week.

Investors also continued to evaluate the Federal Reserve’s policy outlook after the central bank raised interest rates by 25 basis points this week, its first hike in three years. The Fed signaled that further tightening is possible later this year to address stubborn inflation, with Chair Kevin Warsh stressing that price pressures remain elevated.

The Bank of Japan is likewise expected to raise interest rates, while the Bank of England left borrowing costs unchanged on Thursday but cautioned that a protracted conflict in the Middle East could eventually necessitate additional tightening.