FX.co ★ US 10-Year Yield Holds at Near 3-Year High

The yield on the 10-year US Treasury note hovered around 4.85% on Thursday, near its highest level since October 2023. The move came after the Treasury Department announced plans to buy back up to $6 billion in longer-term debt—triple the usual amount—but the increase still fell short of some investors’ expectations for a more aggressive program.

Adding to upward pressure on yields, rising oil prices—driven by escalating tensions between the US and Iran—intensified inflation concerns and reinforced expectations for near-term interest rate hikes. At the same time, growing fiscal worries and record corporate debt issuance, including more than $1.5 trillion in new borrowing by AI-related companies, further weighed on the Treasury market.

Persistent weakness in the Japanese yen also played a role, as Tokyo repeatedly sold US Treasuries in efforts to support its currency. Investors remained focused on upcoming US inflation data, which will be closely watched ahead of the Federal Reserve’s policy meeting next week.