US 10-Year Treasury Yield Steadies

The yield on the 10-year US Treasury note steadied around 4.56% on Friday and was on track to finish the week little changed, as investors balanced softer US inflation data against the escalating conflict between the US and Iran and its potential impact on the interest rate outlook. The US launched multiple strikes against Iran this week, while Tehran responded by targeting US bases in neighboring countries, driving oil prices higher and intensifying inflation concerns. Meanwhile, data released earlier this week showed US consumer inflation rose less than expected in June, while producer prices unexpectedly declined. Markets have now largely priced out the possibility of a Fed rate hike this month, though expectations remain divided over whether policymakers will raise rates in September.

