US 10-Year Yield Extends Drop

2026-05-27 13:12 By Andre Joaquim 1 min. read

The yield on the 10-year US Treasury note fell to 4.47%, retreating sharply from the 16-month high of 4.7% touched on May 20th as a drop in energy prices limited the outlook of higher inflation.

Iran confirmed it has an unofficial draft of a peace deal document that would restore flows of tankers and commercial vessels through the Persian gulf within the month.

However, the White House later denied the report.

This was after the US administration signaled that they were closer to agreeing on a deal to end the war with Iran in previous days.

The resulting drop in energy prices and inflationary risks limited the likelihood that the Fed will raise interest rates this year.

The core PCE price index, which is the Fed's preferred gauge of underlying inflation, is expected to rise to an over two-year high of 3.3% in April.

In turn, strength in leading labor market indicators extended the backdrop of a strong labor market, with ADP weekly values remaining above their recent average.



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