The yield on the 10-year US Treasury note dropped about 5 basis points to 4.25% on Thursday, retreating from five-month highs as geopolitical and trade tensions between the US and Europe over Greenland eased. President Donald Trump ruled out using military force to acquire Greenland and scaled back tariff threats against European countries after reaching a framework for a future deal with NATO. Details of the framework remain unclear, with Denmark ruling out any negotiations over ceding its territory to the US. Domestically, investors awaited weekly jobless claims for fresh insights on the labor market, alongside delayed PCE inflation data. The Federal Reserve is widely expected to keep interest rates unchanged next week, though markets continue to price in 50 basis points of rate cuts later this year.
