US Treasury Yields Steady as Trump Rules Out Iran Strikes

U.S. Treasury yields mostly steadied on Friday, after President Donald Trump ruled out any attacks against Iran prior to the Nov. 3 midterm elections, CNBC reported. Ten-year U.S. Treasury yields held flat at 5.2399%, while 30-year notes remained unchanged at 5.6150% as energy prices pulled back from recent highs.

Treasury Yields Stabilize Amid Geopolitical Shifts

Yields on 10-year U.S. Treasurys, which serve as the primary benchmark for mortgages, auto loans, and credit card debt, remained flat at 5.2399% on Friday morning, according to CNBC. Longer-dated 30-year U.S. Treasury notes, which typically react to geopolitical developments, also held steady at 5.6150%. Meanwhile, the 2-year Treasury note yield ticked up more than 2 basis points to 4.7827%, reflecting the influence of short-term Federal Reserve rate expectations. The moves follow a broader decline in Treasury yields during the previous session, coming on the heels of highs reached earlier in the week since 2002.

Trump Rules Out Iran Strikes Before Midterms

President Trump announced on Truth Social on Thursday that the United States will not launch any military strikes against Iran before the Nov. 3 midterm elections, pointing to productive discussions with Tehran, Channel NewsAsia and Bloomberg reported. Bloomberg noted that the pledge establishes a window of more than three weeks free of offensive U.S. military action against the Islamic Republic. Trump claimed Iran was in very bad condition economically and militarily while asserting that oil was flowing through the Strait of Hormuz in record volumes.

The policy shift follows prior reporting by The Atlantic and The New York Times indicating that the White House had directed the Pentagon to draft potential strike options against Iranian targets ahead of the midterms.

Energy Markets React to Diplomatic Tone

Global energy markets dropped following the president’s announcement, reversing sharp gains driven by ongoing hostilities and tensions in the Strait of Hormuz, CNBC reported. West Texas Intermediate futures fell 0.79% to $90.77 a barrel, while Brent crude dropped 0.99% to $103.25 a barrel, according to CNBC figures. Bloomberg observed that Brent sank below $103 a barrel after surging more than 4% on Thursday, following reports of maritime incidents, including an oil tanker off the northern coast of Qatar being struck by multiple projectiles as reported by the UKMTO maritime agency.

November 3 Election Day Approaches

With no major economic data releases scheduled for Friday, market participants and voters are turning their focus toward the fast-approaching Nov. 3 midterm elections. While the administration maintains that its blockade is working, polling averages indicate Democrats leading Republicans by roughly nine points on the generic congressional ballot.

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