FX.co ★ US 10-Year Yield Holds Steady

The yield on the US 10-year Treasury note was largely steady around 4.48% on Friday, as investors awaited the May employment report for fresh insight into labor market strength and the likely trajectory of Federal Reserve policy. A series of labor market indicators released this week showed the US economy remains resilient, bolstering expectations that the Fed could raise interest rates before year-end as policymakers grapple with inflationary pressures fueled by higher energy prices tied to the Middle East conflict.

On the geopolitical front, President Donald Trump said peace negotiations were nearing their final stage and is reportedly reluctant to enter a full-scale war with Iran despite recent hostilities. However, Iranian Foreign Minister Abbas Araghchi stated that no meaningful progress had been achieved in the talks, while Iran-backed Hezbollah rejected a US-brokered ceasefire proposal between Israel and Lebanon, keeping geopolitical risks elevated.