Treasury yields retreat, 10-year hovers around January 2025 highs
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- 10-year Treasury yields retreated 1 basis point to 4.693% on Friday after briefly pushing above 4.7% on Thursday — their highest level since January 15, 2025 — as Brent crude's climb above $100 a barrel reignited inflationary fears.
- The 2-year Treasury yield pulled back almost 2 basis points to 4.333%, tracking short-term Fed policy expectations, while the 30-year bond yield was flat.
- President Trump told Axios on Thursday he is 'close to making a decision' on a 'massive attack' on Iran that would be 'bigger than ever before,' saying Iran has not 'received enough pain yet.'
- U.S. Central Command completed a 13th consecutive night of strikes on Iranian targets, with the conflict extending to a new battleground in the Red Sea.
- Weekly jobless claims for the week ended July 18 came in at 187,000, well below the 212,000 economists polled by Dow Jones had expected.
- Investors are next watching the S&P Global Flash U.S. PMI report due Friday, which measures the health of American manufacturing and services sectors.
Why it matters: Thursday's push above 4.7% marked the highest 10-year yield since Trump took office, since the 10-year is the benchmark for mortgages, auto loans, and credit card debt. Friday's retreat came despite Trump threatening a 'massive attack' on Iran and oil holding above $100, with a jobless claims beat of 187,000 vs. 212,000 expected offering reassurance.
