Yields on U.S. Treasury securities rose slightly on Friday morning as investors kept a close eye on developments in the Iran conflict.
By 3:30 a.m. ET, the benchmark 10-year Treasury yield increased by nearly 2 basis points to 4.434%. The 2-year note edged up to 3.988%, while the 30-year Treasury yield climbed roughly 3 basis points, reaching 4.962%.
A basis point represents 0.01%, and it’s important to note that bond yields and prices move inversely.
On Thursday evening, President Donald Trump posted on Truth Social that he would extend the suspension of attacks on energy facilities by 10 more days to allow ongoing negotiations for a peace agreement. The pause is now set to end on April 6, with Trump noting that “talks are ongoing and … they are going very well.”
Oil prices continued their upward trend on Friday, with Brent crude futures rising 1.4% to around $109.58 per barrel, while West Texas Intermediate increased 0.8% to $95.21 per barrel.
In a note Friday morning, Deutsche Bank strategist Jim Reid described the initial reaction in oil markets following Trump’s post as a “kneejerk response,” with Brent now trading close to its pre-announcement level.
Reid added that while the delay may lower some immediate risks of escalation, it does not clarify the path to resolution, given Iran’s denial of talks and the continued partial closure of the Strait of Hormuz.
Investors are also awaiting the final March reading for the Michigan Consumer Sentiment index, which is scheduled for release later in the day.