FX.co ★ US 10-Year Yield Eases as Oil Prices Fall, but Remains Elevated

The yield on the 10-year US Treasury note eased to 4.7% on Monday, tracking the pullback in crude prices, but remained close to the 20‑month high of 4.75% touched in the previous session. Persistent worries over widening fiscal deficits and heavy corporate debt issuance continued to exert upward pressure on long-term yields.

The US Treasury announced it would double its liquidity-support buyback operations for longer-dated bonds. According to CNBC, Treasury Secretary Scott Bessent may draw on nearly $1 trillion from the Treasury’s General Account to help finance those buybacks instead of issuing short-term bills, stoking concerns about additional dollar weakness.

On the geopolitical front, the US expanded secondary sanctions on entities and countries that maintain business ties with Iran. Bessent also warned that a major financial institution could be sanctioned this week and indicated that China would not be exempt from potential measures.