US 10 Year Treasury Note Yield at 4.65percent

The yield on the 10-year US Treasury note was at 4.65% on Friday, dropping after testing 19-month highs of 4.75% on Tuesday as recent economic data limited the urgency for the Federal Reserve to raise interest rates. Producer prices were firmly under expectations in July and consumer inflation slowed for a second consecutive month, suggesting that the rebound in energy prices had limited impact on higher price growth. In turn, retail sales unexpectedly contracted in the period, driving part of the market to consider momentary weakness for consumers. Still, the drop in yields were more muted in the longer end of the curve as lingering risks on energy supply maintained inflationary risks in the near term. This was magnified by the trend of a weakening Japanese yen, risking selling pressure from the largest foreign holder of US Treasury notes should the country intervene in the foreign exchange market. Such concerns were reflected by a a sharp tail in the latest 30-year bote auction.

Register a Revolut Business Account