US 10-Year Treasury Yield Edges Up
The yield on the US 10-year Treasury note edged up to 5.26% on Friday, following a volatile session on Thursday, when the benchmark yield fell 6 b+s from its highest level since 2002. Investors continued to assess developments in the Middle East and their implications for energy prices and inflation. Oil prices eased after US President Trump pledged to refrain from attacking Iran until after the midterm elections. Nevertheless, markets continued to price in the possibility that the Fed would need to keep interest rates elevated for longer to contain persistent inflationary pressures. The probability of the Fed holding rates steady this month stood at around 81%, while the odds of a 25bps rate hike in December were approximately 69%. For the week, the 10-year Treasury yield was down about 5bps. Meanwhile, strong demand at this week’s 10-year and 30-year Treasury note auctions suggested that investors remained willing to purchase longer-dated government debt despite the recent sell-off.
26% on Friday, following a volatile session on Thursday, when the benchmark yield fell 6 b+s from its highest level since 2002. Investors continued to assess developments in the Middle East and their implications for energy prices and inflation. Oil prices eased after US President Trump pledged to refrain from attacking Iran until after the midterm elections. Nevertheless, markets continued to price in the possibility that the Fed would need to keep interest rates elevated for longer to contain persistent inflationary pressures.
The probability of the Fed holding rates steady this month stood at around 81%, while the odds of a 25bps rate hike in December were approximately 69%. For the week, the 10-year Treasury yield was down about 5bps. Meanwhile, strong demand at this week’s 10-year and 30-year Treasury note auctions suggested that investors remained willing to purchase longer-dated government debt despite the recent sell-off.