US 10-year Treasury yield holds below 5% after sharp drop

The 10-year US Treasury yield held below 5% on Friday, rising slightly to 4.9779% after its largest daily drop since March 2023, driven by safe-haven demand amid AI-related debt concerns and geopolitical risks. The yield fell 17 basis points on Thursday to 4.972%, its first dip under 5% in a month, as investors sought safety following a tech selloff. Bank of America remains tactically risk-averse until mid-November, predicting further declines in stocks, yields, and the dollar. Oil prices added pressure, with WTI above $100 per barrel after Houthi attacks on Saudi facilities, fueling inflation worries that could keep Federal Reserve rates higher. Investors now await next week's Fed decision and PMI data for further direction.