The yield on the US 10-year Treasury note slipped to around 4.54% on Friday, its second straight daily decline, as falling oil prices eased inflation worries and tempered expectations for more aggressive policy tightening. The move came after reports that the US and Iran will continue peace talks despite a recent flare-up in hostilities. Even so, markets still anticipate at least one additional Federal Reserve rate hike this year.
At the same time, New York Fed President John Williams said that, among the forces driving US inflation, he is paying particular attention to demand boosted by artificial intelligence. Separately, Fed Chair Kevin Warsh announced the leaders of five task forces tasked with reviewing the central bank’s approach to key areas of policymaking, suggesting potential shifts in how the Federal Reserve conducts monetary policy.
