The yield on the US 10-year Treasury note climbed to around 4.33% on Friday, rising for a fifth straight session as stalled US–Iran peace efforts and ongoing disruptions in the Strait of Hormuz kept inflation risks elevated. President Donald Trump said in a social media post on Thursday that he had ordered the US Navy to “shoot and kill” vessels laying mines in the Strait of Hormuz. The strategic waterway remains effectively closed, with both sides maintaining blockades, driving energy prices higher and reinforcing inflationary pressures.
At the same time, the Federal Reserve is widely expected to leave the federal funds rate unchanged next week and likely for most of the year, as policymakers assess how the conflict with Iran is affecting inflation and economic growth. Investors also weighed comments made earlier this week by Fed nominee Kevin Warsh, who underscored the importance of central bank independence in monetary policy decisions.
