FX.co ★ US 10-Year Treasury Yield Holds Advance

The yield on the US 10-year Treasury note hovered around 4.68% on Friday, after climbing more than 5 basis points in the previous session, as investors awaited the closely watched July jobs report for new signals on labor market strength and the Federal Reserve’s policy path. Fed officials have increasingly indicated they are ready to raise interest rates soon amid mounting inflationary pressures, with markets pricing in a 25-basis-point hike in September. According to the Financial Times, Chair Kevin Warsh would be prepared to increase rates next month if upcoming inflation data remain elevated. He is also expected to stick to his pared-back communication approach despite criticism from financial markets. At the same time, Treasury yields found additional support from a rebound in oil prices, as renewed tensions in the Strait of Hormuz revived concerns about inflation and the future trajectory of interest rates.