The yield on the US 10-year Treasury note climbed back to 4.27% on Friday, hovering near a four-week high after an earlier pullback, as tensions with Iran continued to intensify. Defense Secretary Hegseth told reporters that the United States would launch its largest wave of strikes against Iran so far on Friday.
Oil prices also rebounded after an initial drop, holding near their highest levels since 2022. The benchmark US yield is up nearly 13 basis points for the week, reflecting growing fears of an energy-driven inflation spiral and mounting concerns over fiscal imbalances tied to war-related spending.
The Federal Reserve is set to decide on monetary policy next week. While no change to the federal funds rate is anticipated, markets will watch closely for any signals about policymakers’ outlook for the rest of the year. Currently, investors are pricing in just one Fed rate cut in 2026.
