Treasury yields today retreat as 10-year stays near January 2025 high
U.S. Treasury yields eased Friday after oil-driven inflation worries pushed the 10-year yield above 4.7% a day earlier.
By Dev Ramirez · Crypto Correspondent
· 3 min read
U.S. Treasury yields today moved lower Friday, giving investors a small break after the 10-year yield briefly climbed to its highest level since January 2025. The move matters because Treasury yields influence borrowing costs across the economy, including mortgages, auto loans and other consumer credit.
CNBC reported that the yield on the 10-year U.S. Treasury note was recently down 1 basis point at 4.693%. On Thursday, it rose above 4.7%, a level CNBC said had not been reached since Jan. 15, 2025, before the start of President Donald Trump’s second term.
A basis point is one-hundredth of a percentage point, so a 1 basis point move equals 0.01%. Bond yields and bond prices move in opposite directions: when investors bid up the price of a bond, its yield falls, and when bond prices fall, yields rise.
Why did Treasury yields pull back today?
The retreat came after a sharp move higher Thursday, when Brent crude oil rose above $100 a barrel and stirred fresh concern about inflation, according to CNBC. Higher oil prices can feed into inflation because energy touches transportation, production and household costs, which can affect how investors think about future Federal Reserve policy.
The 2-year Treasury yield, which tends to reflect expectations for near-term Fed interest-rate decisions more closely than longer-term bonds, fell almost 2 basis points to 4.333%, CNBC reported. The 30-year Treasury bond yield was little changed.
- 10-year Treasury yield: 4.693%, down about 1 basis point, according to CNBC.
- 2-year Treasury yield: 4.333%, down almost 2 basis points, according to CNBC.
- 30-year Treasury yield: roughly flat, according to CNBC.
For everyday investors, the 10-year yield is one of the market’s main reference points. It helps set the tone for rates on longer-term loans and can also affect stock valuations, because higher bond yields can make future corporate profits look less valuable in today’s dollars.
What else is moving the bond market?
Geopolitical risk remained part of the backdrop. President Trump told Axios on Thursday that he was close to deciding whether to launch what he called a “massive attack” on Iran, as the Middle East conflict widened to the Red Sea.
“I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it,” Trump said in the Axios interview. He also said Iran had not “received enough pain yet,” according to Axios.
CNBC reported that U.S. forces have struck Iranian targets over the past two weeks, with Central Command completing a 13th straight night of strikes overnight. Military conflict can affect Treasury markets through oil prices, inflation expectations and demand for assets seen as safer during periods of stress.
Economic data also gave investors something to process. Initial jobless claims for the week ended July 18 came in at 187,000, below the 212,000 expected by economists surveyed by Dow Jones, according to CNBC. Jobless claims measure new applications for unemployment benefits and are watched as a timely signal on the labor market.
Investors were also waiting for the S&P Global Flash U.S. purchasing managers index report due Friday. The PMI tracks activity in manufacturing and services, giving markets another read on whether the economy is heating up, cooling down or holding steady.
This story draws on original reporting from CNBC.
