U.S. Treasury yields were broadly steady on Friday, though bond markets remained tense after a sharp sell-off in the previous session. On Thursday, yields climbed toward multiyear highs as oil prices rose and tensions in the Middle East intensified.
The 10-year U.S. Treasury note yield stood at 4.9424% in early trading. That benchmark is closely watched because it influences borrowing costs for mortgages, auto loans and credit card debt.
The 30-year Treasury bond yield, which is more sensitive to geopolitical risk, held at 5.3554%. The 2-year Treasury note yield, which typically reacts to short-term Federal Reserve rate expectations, was also little changed at 4.5598%.
Markets were taking a pause after heavy selling in the previous session. U.S. oil prices had moved above $100 a barrel, while the Treasury Department on Thursday bought back about $5.2 billion of off-the-run 10- and 20-year notes, roughly half of the $10.5 billion offered. That added to selling pressure in the bond market.
During the previous session, the 10-year yield rose by 11 basis points to 4.954%, its highest level since October 2023. One basis point equals 0.01%, and bond prices move inversely to yields.
With the Federal Reserve’s next interest rate decision approaching next week, investors are closely watching fresh U.S. consumer inflation data due later on Friday. The release is expected to provide a clearer read on the inflation backdrop in the U.S. economy.
That follows August’s wholesale inflation report, which showed prices rose 0.4% last month, matching consensus expectations. Excluding food and energy, core inflation increased 0.2% for the month, below forecasts of 0.3%.
Oil remained above $100 a barrel on Friday. West Texas Intermediate futures were last seen at $101.14, down 1.34%, while international benchmark Brent crude fell 1.61% to $105.94 a barrel.
