The yield on the 10-year US Treasury note held around 4.39% on Friday, staying within a narrow range as investors weighed rising geopolitical risks and an uncertain economic outlook. Demand for safe-haven assets kept yields under pressure this week, driven by escalating tensions between Israel and Iran and the possibility of US involvement.
President Donald Trump reportedly offered Iran a final opportunity to abandon its nuclear program, delaying a decision on potential military action for up to two weeks. On the monetary policy front, the Federal Reserve kept interest rates unchanged earlier this week and reaffirmed its cautious, data-dependent stance. Chair Jerome Powell warned that inflation could rise in the coming months due to the impact of new tariffs, while the Fed’s updated projections included two 25 basis point rate cuts in 2025, alongside weaker growth forecasts.
