US Treasury yields advance on Friday during the North American session after reversing their course following the release of US Retail Sales data last week, which disappointed investors. Meanwhile, the lack of news from the Middle East kept Oil prices higher amid fears of a resumption of hostilities.

Long-end yields climb as debt, supply and inflation concerns dominate

US Treasury yields across the yield curve edged modestly higher, yet the 30-year bond yield surged to levels last seen in 2007 amid fears of a possible reacceleration of inflation in the United States. 

The US 10-year Treasury yield edged up by nearly four basis points to 4.728%, while the 30-year bond yield grabbed headlines, up nearly six basis points to 5.315%, as investors demand a higher premium. A Bloomberg article read that the rise in the 30-year is a reflection of “investor angst over the surging national debt, a flood of long-dated bond sales and inflation that’s been stuck over the Federal Reserve’s target for the past five years.”

Last week’s US data showed that consumer spending is slowing, while the disinflation process resumed, with consumer and producer prices posting two straight months of declines.

A light economic docket keeps investors focused on the release of the Federal Reserve’s last meeting minutes on Wednesday.

The US 2-year T-note yield, the most sensitive to interest rate expectations, rises by nearly 1.5 basis points to 4.179%. So far, money markets have priced in a 68% chance that the Fed will hold rates unchanged at the September 2026 meeting.

The US Dollar Index (DXY), which tracks the performance of the buck’s value against six currencies, is almost unchanged, down 0.02% at 99.59.

US 10-year Treasury yield chart