On Thursday, the yield on the 10-year Treasury fell by 4 basis points to 5.237%, following a week where it reached its highest level since 2002. The 30-year Treasury bond yield also decreased nearly 5 basis points to 5.614%.
Federal Reserve Governor Christopher Waller stated that further interest rate hikes are necessary to control inflation, which has exceeded the Fed's 2% target for over five years. However, he noted that these hikes do not need to occur at consecutive meetings, allowing for a more measured approach.
Initially, Waller's comments led to a rise in yields, but they later retreated after President Donald Trump announced that the U.S. would not engage in military action against Iran until after the upcoming midterm elections. Additionally, a strong auction of 30-year Treasury bonds, where 72.3% of the $22 billion offered was purchased by indirect bidders, helped to stabilize yields.
This auction's yield was slightly lower than previous sales, indicating a healthy demand for long-term government debt despite the recent volatility in yields