US treasury yield on 10-year jumped 3.7 basis points to 4.99 per cent. The 10-year yield is down about 11 basis points on the week and on pace for a third straight week of declines, its longest run lower since June. This comes a day after the benchmark 10-year yield saw its biggest one-day drop in nearly four years, but remained under the 5 per cent mark as concerns about the durability of a rally in AI-related stocks lingered. The yield on the 30-year bond added 2.9 basis points to 5.316 per cent, but was down nearly 13 basis points on the week, also on track for a third straight week of declines. The 2-year US Treasury yield, which typically moves in step with interest rate expectations for the US Fed, climbed 5.5 basis points to 4.69 per cent, putting it down about 5 basis points on the week, which would be a fourth consecutive week of declines, its longest stretch of the year.
The breakeven rate on 5-year US Treasury Inflation-Protected Securities (TIPS) was last at 2.456 per cent, on track for its highest close since September 10, after closing at 2.38 per cent on Thursday. The 10-year TIPS breakeven rate was last at 2.346 per cent, indicating the market sees inflation averaging about 2.3 per cent a year for the next decade.
