US Treasury Yields Retreat as Investors Reassess Economic Outlook

U.S. Treasury yields edged lower toward the end of the week as investors weighed the state of the American economy, amid easing concerns over trade tensions and geopolitical risks.

The yield on the benchmark 10-year Treasury note fell by more than two basis points to 4.229%, while the 30-year yield declined by over three basis points to 4.818%. Meanwhile, the two-year Treasury yield slipped by less than one basis point to 3.605%.

A basis point equals 0.01 percentage points, and Treasury yields move inversely to prices.

Market sentiment improved as investor anxiety surrounding trade disputes and geopolitical developments moderated late in the week. This shift followed U.S. President Donald Trump’s decision on Wednesday to cancel proposed tariffs on eight European countries.

The tariffs had been threatened as part of a broader political dispute, after Trump warned he would impose trade measures unless the countries supported his ambitions regarding control over Greenland. The reversal helped calm markets, prompting a modest rally in government bonds and a corresponding decline in yields.