Investing.com — US Treasury bonds declined on Friday as heightened tensions between the United States and Iran raised concerns about potential inflationary pressures from rising oil prices.
President Donald Trump said Friday that Iran had requested to continue talks and the US had agreed, but stated that the June ceasefire was “over.”
The benchmark 10-year Treasury yield increased 3 basis points to 4.569% in afternoon trading, after reaching a seven-week high on Wednesday. The 30-year bond yield rose 1.8 basis points to 5.071%, also after climbing to a seven-week peak on Wednesday.
The 2-year note yield, which is most sensitive to Federal Reserve rate expectations, advanced 5 basis points to 4.212%. On Wednesday, the 2-year yield touched its highest level in two weeks.
US crude futures fell 1.3% to $71.09, but remained on track for weekly gains of 3.5% following recent attacks in the region.
Daily tanker traffic through the Strait of Hormuz slowed as the conflict intensified, according to data. Before this week’s attacks, daily tanker traffic had risen to its highest level since the war began, averaging 40 ships transiting the strait.
Treasury yields rose for a second consecutive week. The 10-year yield increased nearly 20 basis points over the last two weeks, marking its largest gain for that period since mid-May. The 2-year yield climbed more than 12 basis points in two weeks, the largest rise since the week of May 18.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.