US 10-Year Yield Slips on Geopolitical Risks

2026-02-20 02:23 By Jam Kaimo Samonte 1 min. read

The yield on the US 10-year Treasury note eased to around 4.07% on Friday, paring gains from earlier in the week as escalating tensions between the US and Iran fueled safe-haven demand for Treasuries.

The US military is bolstering its presence in the Middle East as President Donald Trump considers potential action to pressure Tehran at the negotiating table.

On the economic side, Thursday’s data showed weekly jobless claims fell to a five-week low, while the US trade deficit widened in December and pending home sales slipped in January.

Investors are now awaiting advance fourth-quarter GDP figures and the PCE price index report, the Federal Reserve’s preferred inflation gauge.

Minutes from the latest FOMC meeting highlighted divisions among policymakers on the rate outlook, with some indicating further hikes may be needed if inflation remains elevated.

Traders have scaled back expectations for aggressive easing but continue to price in two 25 basis point cuts before year-end.



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