Treasury yields retreat, 10-year stays near January 2025 highs - CNBC

What the report says

CNBC reported that U.S. Treasury yields moved lower Friday as a pullback in oil prices eased some inflation concerns tied to Middle East tensions. The 10-year Treasury yield, a major reference rate for mortgages, auto loans and credit cards, was recently down more than 2 basis points at 4.681%, after briefly topping 4.7% Thursday, its highest level since Jan. 15, 2025. The 2-year yield slipped more than 2 basis points to 4.333%, while the 30-year yield edged down to 5.164%. Bond yields fall when prices rise.

The move followed a Reuters report, cited by CNBC, that Pakistan, backed by China, is looking for a way to restart U.S.-Iran peace talks aimed at ending the regional conflict. CNBC said Brent crude settled nearly 4% lower at $96.78 a barrel, while U.S. West Texas Intermediate fell 3% to $89.31. JoAnne Bianco of BondBloxx told CNBC that lower oil prices had reduced some pressure on inflation and rate expectations, while longer-term Treasuries remain exposed to energy-market shifts linked to the Middle East.

CNBC also noted that oil prices came off their intraday lows after The New York Times reported President Donald Trump was meeting senior advisers and Cabinet officials to consider whether to intensify attacks against Iran. The article said Trump had told Axios he was nearing a decision on a possible large-scale strike, while U.S. Central Command had continued recent operations against Iranian targets.

Separately, yields had already eased after S&P Global’s flash U.S. purchasing managers index for July registered 53.8, below the 54.4 expected by economists polled by Dow Jones, suggesting slightly softer business activity than anticipated.