Treasury Yields Hold Steady as Trump Delays Iran Strikes

U.S. Treasury yields were little changed Friday morning as investors assessed the latest government bond auction and President Donald Trump's pledge to avoid military strikes against Iran until after next month's midterm elections. The market reaction followed a decline in yields during the previous session, after borrowing benchmarks reached their highest levels since 2002 earlier in the week.

The 10-year Treasury yield, a benchmark influencing mortgage rates, auto loans and credit card borrowing costs, rose less than 1 basis point to 5.612%, according to market data reported by CNBC. The 30-year Treasury yield remained unchanged at 5.6150%, while the two-year yield increased less than 2 basis points to 4.774%.

One basis point equals 0.01 percentage point. Bond prices and yields generally move in opposite directions, meaning rising yields correspond to falling bond prices.

Trump said Thursday that the United States would not launch strikes against Iran before next month's midterm elections. His comments came as support for the war in the Middle East appeared to be declining, according to the CNBC report.

Energy markets also reacted to the president's remarks. Oil prices had climbed sharply since the conflict began on February 28, but both major crude benchmarks fell following his comments.

West Texas Intermediate crude futures were trading about 1% lower at approximately $90 per barrel, while Brent crude, the global benchmark, declined more than 1% to around $102 per barrel, according to CNBC.

Federal Reserve Governor Christopher Waller also addressed the inflation outlook, suggesting that further interest rate increases could be necessary to contain persistent price pressures. Inflation has remained above the Federal Reserve's 2% target for more than five years, according to the report.

Speaking at a Central Bank of Turkey forum in Istanbul, Waller indicated that additional rate increases might not be required immediately. His remarks highlighted the continuing debate over how monetary policy should respond to inflation that has remained above the central bank's goal.

The Treasury Department's latest long-term bond sale provided another indicator of investor demand. On Thursday, the department sold $22 billion in 30-year Treasury notes, with indirect bidders, including central banks, purchasing more than 72% of the offering.

That share exceeded the average of 68% recorded across the previous 10 auctions, according to CNBC. On Wednesday, the Treasury Department also sold $39 billion in 10-year notes.

No major U.S. economic data releases were scheduled for Friday, leaving investors to assess Treasury auction results, inflation concerns, Federal Reserve policy signals and developments surrounding the conflict with Iran.