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Bond yields largely steadied Friday morning as investors digested the latest Treasury auction and President Donald Trump's pledge not to attack Iran until after the midterm elections. Yields on 10-year U.S. Treasurys — the main benchmark for mortgages, auto loans and credit card debt — were last seen flat at 5.2399%.
The yield on longer-dated 30-year U.S. Treasury notes — which tend to move on geopolitical events — was also unchanged at 5.6150%. The yield on the 2-year Treasury note , which more closely follows short-term Federal Reserve rate decisions, was more than 2 basis points higher at 4.7827%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another. The moves come after Treasury yields fell during the previous session, having hit their highest level since 2002 earlier in the week. President Trump said on Thursday that the U.S. will not launch any strikes against Iran before next month's midterm election, striking a more diplomatic tone amid an apparent slide in support for the war in the Middle East .
Energy prices, which have risen sharply since the outbreak of the conflict on Feb. 28, fell after Trump's comments. West Texas Intermediate futures were last seen 0.79% lower at $90.77 a barrel, with Brent crude , the global price benchmark, down 0.99% at $103.25. Earlier, Federal Reserve Governor Christopher Waller suggested that more interest rate rises may be needed to tackle stubborn inflation, which has stayed above the Fed's 2% target for more than five years.
But speaking at a Central Bank of Turkey forum in Istanbul, Waller said hikes may not necessarily be needed immediately. On Thursday, the Treasury Department sold $22 billion in 30-year notes, with indirect bidders — including central banks — taking more than 72% of the auction , above a 10-auction average of 68%. The department on Wednesday sold $39 billion in 10-year notes.
There are no major economic data releases expected Friday.
Source: CNBC
