US 10-Year Yield Drops Further

2026-05-28 14:54 By Andre Joaquim 1 min. read

The yield on the 10-year US Treasury note fell to 4.46%, extending the drop from the 16-month high of 4.7% touched on May 20th as reports of an interim deal between the US and Iran limited the inflationary outlook.

The US and Iran reportedly agreed to a 60-day memorandum of understanding that extends the current ceasefire and gradually restores the flow of tankers and commercial vessels through the Strait of Hormuz.

Energy prices pared their rebound, adding support for Treasuries after inflation gauges did not surprise to the upside.

PCE inflation rose as expected, and first quarter GDP revision was revised downwards on softer investment growth.

Still, consumer spending remained relatively robust and jobless claims maintained their low level.

Hawkish remarks by FOMC members also prevented a further drop in yields.

Fed Vice Chair Jefferson warned that inflation risks remain tilted to the upside, while Minneapolis Fed President Kashkari said consumer prices are still “much too high”.



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