Treasury Yields Continue to Decline

The yield on the US 10-year Treasury note fell nearly 6 basis points to 4.36% on Thursday, extending a similar decline in the previous session, amid renewed trade tensions, geopolitical risks, and lower-than-expected inflation.

President Trump announced plans to send formal letters to key trading partners within the next one to two weeks, outlining unilateral tariff measures aimed at pressuring countries into new trade agreements.

Geopolitical concerns also weighed on sentiment after Iran threatened to strike US military bases if nuclear negotiations break down.

Meanwhile, softer-than-expected consumer and producer inflation reinforced expectations that the Fed will cut interest rates twice before year-end.

Traders are also closely watching a key 30-year bond auction scheduled for today, which will provide additional insight into demand for longer-duration debt.

On Wednesday, a $39 billion auction of 10-year notes drew strong demand.