FX.co ★ US 10-Year Treasury Yield Steadies

The yield on the 10-year US Treasury note hovered around 4.56% on Friday and was set to end the week little changed, as investors weighed softer US inflation data against rising geopolitical tensions between the US and Iran and their implications for interest rate policy.

The US conducted multiple strikes against Iran this week, prompting Tehran to retaliate by targeting US bases in neighboring countries. These developments pushed oil prices higher and reignited inflation worries.

Earlier in the week, data showed that US consumer prices rose less than expected in June, while producer prices unexpectedly declined. As a result, markets have largely ruled out the possibility of a Federal Reserve rate hike this month, though expectations remain split on whether policymakers will move to raise rates in September.