Globe Stocks Daily
Treasury yields edged higher early Friday, following a sharp drop the previous session. Yields on 10-year U.S. Treasurys — the main benchmark for mortgages, auto loans and credit card debt — rose by 2 basis points to 4.9779%.
The yield on the 2-year Treasury note, which more closely follows short-term Federal Reserve rate decisions, also increased by 2 basis points to 4.6647%. The yield on longer-dated 30-year U.S. Treasurys — which tends to move on geopolitical developments — was up more than 1 basis point to 5.3007%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another. Earlier this week, investors flocked to U.S. government bonds as a safe haven trade , amid growing concerns over rising AI-related debt and renewed Middle East tensions. The 10-year benchmark yield tumbled 17 basis points to 4.972% during Thursday's session — its biggest one-day slide since March 10, 2023, and the first time it has moved below the key 5% level in a month.
With the Federal Reserve's interest rate decision due next week, traders will also look to Friday's flash S&P Global PMI readings on manufacturing and services for a fresh view on the U.S. growth and inflation trajectory. Rising energy costs are also weighing on inflation concerns. West Texas Intermediate futures for December delivery advanced 1.16% to $100.61 a barrel on Friday, while Brent crude , the international oil price benchmark, was trading at $114.06, a 0.79% increase.
The price rises come as fresh attacks by Iran-backed Houthi militants against Saudi Arabian facilities drive new fears over an oil supply squeeze. They follow reports earlier this week suggesting that the U.S. and Israel could resume strikes against Iran following the midterm elections.
Source: CNBC
