Treasury Yields Ease on Thursday

2026-05-14 12:57 By Joana Taborda 1 min. read

The yield on the US 10-Year Treasury note edged lower to 4.45% on Thursday after reaching its highest level since July in the previous session, as investors continued to evaluate the political backdrop and its implications for the economy and monetary policy.

Oil prices stabilised and investors also focused on the summit between US President Trump and Chinese President Xi.

On the economic front, US retail sales slowed as expected but still indicated resilient consumer spending.

Headline retail sales rose 0.5% in April, while the core retail sales measure, which feeds directly into GDP calculations, also increased by 0.5%.

Earlier this week, both the CPI and PPI reports pointed to renewed inflationary pressures stemming from the energy shock triggered by the outbreak of war in Iran.

Investors currently expect the Fed to keep the federal funds rate unchanged through the remainder of the year, although markets continue to price in around a 28% probability of a 25bps rate hike in December.



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Treasury Yields Ease on Thursday
The yield on the US 10-Year Treasury note edged lower to 4.45% on Thursday after reaching its highest level since July in the previous session, as investors continued to evaluate the political backdrop and its implications for the economy and monetary policy. Oil prices stabilised and investors also focused on the summit between US President Trump and Chinese President Xi. On the economic front, US retail sales slowed as expected but still indicated resilient consumer spending. Headline retail sales rose 0.5% in April, while the core retail sales measure, which feeds directly into GDP calculations, also increased by 0.5%. Earlier this week, both the CPI and PPI reports pointed to renewed inflationary pressures stemming from the energy shock triggered by the outbreak of war in Iran. Investors currently expect the Fed to keep the federal funds rate unchanged through the remainder of the year, although markets continue to price in around a 28% probability of a 25bps rate hike in December.
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