Treasury yields rise as traders await Fed decision and key data

U.S. Treasury yields edged higher Friday after a sharp drop the prior session, with the 10-year yield rising 2 basis points to 4.9779% and the 2-year yield up 2 basis points to 4.6647%. The move follows Thursday's 17-basis-point plunge in the 10-year yield to 4.972%, its biggest one-day slide since March 2023, driven by safe-haven demand amid AI debt concerns and Middle East tensions. Traders now await Friday's PMI data and next week's Federal Reserve decision. Rising oil prices—WTI at $100.61 and Brent at $114.06—amid Houthi attacks on Saudi facilities and potential U.S.-Israel strikes on Iran add to inflation worries, complicating the Fed's rate path.