U.S. bond yields fell across the board, with the 10-year yield hovering near the highest level since January 2025
The price of Brent crude oil exceeded US$100 per barrel, reigniting inflation panic. Affected by this, U.S. Treasury yields briefly reached their highest level since January 2025 on Thursday; U.S. Treasury yields fell across the board on Friday. The 10-year U.S. Treasury bond is the global pricing anchor for mortgage, car loan, and credit card interest rates. The latest yield fell 1 basis point to 4.693%. The yield briefly stood at 4.7% on Thursday, the highest since January 15, 2025, before Trump began his second term. The 2-year U.S. Treasury yield closely followed the trend of the Federal Reserve's short-term interest rate policy, falling nearly 2 basis points this time to 4.333%; the longer-term 30-year U.S. Treasury yield was basically flat. General financial rules: 1 basis point (bp) = 0.01%; Treasury bond yields and bond prices move in opposite directions. Detailed closing prices of U.S. Treasury bonds by maturity The war in the Middle East has spread to a new battlefield in the Red Sea, and US President Trump has stated that he will soon decide whether to launch a "large-scale military strike" against Iran. In an interview with Axios on Thursday, Trump said that the intensity of the strikes planned for this round will exceed all military actions in this round of conflict, and the intensity of the strikes that Iran has endured is still insufficient. "I am planning an unprecedented large-scale attack, with an unprecedented scale. I am about to make the final decision, and the United States is fully prepared for all operations." Trump said in the interview. The U.S. military has continued to attack Iranian targets in the past two weeks, and the U.S. Central Command completed its 13th consecutive night of air strikes overnight. Also on Thursday, the United States reported 187,000 initial jobless claims for the week ended July 18, down from Economists polled expected 212,000. The market will next focus on the initial value of the S&P Global U.S. Purchasing Managers Index (PMI) to be released on Friday, which is used to measure the overall economic prosperity of the U.S. manufacturing and service industries.