10-Year Treasury Yield Down to 4-Month Lows

The yield on the US 10-year Treasury note fell below 4% on Friday, its lowest level in four months, ending February about 25 basis points lower, its strongest monthly performance in a year. Safe-haven demand persisted amid ongoing policy uncertainty surrounding President Trump's administration policies on trade, heightened tensions in the Middle East, and growing concerns about the resilience of the US economy. On the data front, producer prices rose more than expected for a second consecutive month in January. Despite the rise, investors still bet on Federal Reserve rate cuts in July. The yields were further bolstered by a massive rotation out of AI-heavy equities as investors sought to diversify their portfolios.

US 10 Year Government Bond Yield decreased to 4.02%, the lowest since November 2025. Over the past 4 weeks, US 10 Year Note Bond Yield lost 22.60 basis points, and in the last 12 months, it decreased 24.10 basis points.

The yield on the 10-year US Treasury note fell to 4% on Friday, the lowest in three months, amid robust demand for the safety of Treasuries and a higher preference for longer-maturity notes and bonds. Global markets pivoted to US Treasuries amid lingering uncertainty on US economic policy after President Trump threatened 15% tariffs under the Section 122 balance of payment economic emergency, but passed a lower 10% level. Concerns of geopolitical instability also supported sovereign bonds as the US delegation started nuclear talks with Tehran. The yield on the 10-year note fell despite evidence of sticky inflation and a stable labor market, driving rate traders to push back expectations of the Federal Reserve's first rate cut this cycle to July. Still, Treasuries in the shorter end of the curve underperformed as the supply of bills continued to increase, despite the Federal Reserve's purchases of short-term securities to maintain reserve balances ample.