US Treasury yields dropped on Friday after Federal Reserve Governor Christopher Waller stated that inflation is softening and the central bank might cut interest rates at its next meeting in July. The 10-year yield fell more than 1 basis point to 4.377%, while the 30-year bond yield decreased less than a basis point to 4.89%. The 2-year note yield dropped over 3 basis points to 3.908%.
Waller’s comments came two days after the Federal Reserve maintained its borrowing rate unchanged at 4.25%-4.5% in June, citing concerns about inflation potentially rising and economic growth slowing.
Lawrence Gillum, chief fixed income strategist at LPL Financial, believes the Fed will cut rates more than expected, supporting bond markets. This follows an improving inflation story over the past few months, with softer-than-expected economic data.
Source: https://www.cnbc.com/2025/06/20/us-treasury-yields-little-changed-as-trump-considers-strike-on-iran.html