Yields Flat After Trump's Iran Pledge
U.S. Treasury yields were largely unchanged Friday morning as investors weighed the latest government debt auction and President Donald Trump's commitment to avoid military action against Iran until after the midterm elections. The 10-year Treasury yield, a key reference for mortgages, auto loans and credit card rates, held at 5.2399%. The 30-year yield, which is more sensitive to geopolitical developments, also stayed put at 5.6150%. The 2-year yield, which tracks expectations for Federal Reserve policy, rose more than 2 basis points to 4.7827%. One basis point is one-hundredth of a percentage point, and yields move opposite to prices.[S1]
Friday morning saw bond yields hold roughly flat as traders weighed the most recent Treasury auction alongside President Donald Trump's commitment to hold off on attacking Iran until the midterms had passed. The 10-year Treasury yield, the key reference for mortgages, auto loans and credit card debt, was unchanged at 5.2399%. The 30-year yield, which is more sensitive to geopolitical developments, also stayed put at 5.6150%, while the 2-year note, tied closely to near-term Fed decisions, added more than 2 basis points to reach 4.7827%. A basis point is 0.01%, and yields move opposite to prices.[S1]
Fed's Waller Signals Possible Rate Hikes
These flat moves came on the heels of a pullback in yields during the prior session, after they had touched their highest since 2002 earlier in the week. On Thursday, Trump said the U.S. would not carry out strikes on Iran before next month's midterm election, adopting a more diplomatic posture as support for the Middle East war appeared to erode. Energy prices, which had surged since the conflict started on Feb. 28, declined following his remarks. West Texas Intermediate futures slipped 0.79% to $90.77 a barrel, and Brent crude, the global benchmark, lost 0.99% to $103.25.[S1]
