US 10-Year Treasury Yield Falls to 5.202% — CNBC

In the United States, the yield on 10-year government bonds fell by more than 4 basis points on October 13, to 5.202%. This came amid lower energy prices and expectations for key macroeconomic data this week, CNBC reports.

Yield dynamics

The yield on 30-year US Treasury bonds also lost more than 4 basis points, reaching 5.552%. At the same time, the yield on two-year securities, which is more closely linked to the Federal Reserve's short-term rate decisions, rose by less than 1 basis point, to 4.80%.

One basis point equals 0.01 percentage points. Bond prices and their yields move in opposite directions. Trading in the US government bond market resumed on Tuesday after the Monday holiday, when the country observed Columbus Day.

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Oil and inflation expectations

The decline in yields followed a notable drop in oil prices. November futures for US West Texas Intermediate crude lost more than 1% and traded near $92 per barrel. Brent futures also fell by more than 1%, to around $105 per barrel.

Investors assessed the prospect of increased supplies of Russian diesel fuel to the global market following the so-called energy truce between the Russian Federation — an aggressor state — and Ukraine, concluded with US mediation.

US inflation data for September are due to be released on Wednesday. According to the consensus forecast, annual inflation will amount to 3.7%, compared with 3.4% in August. The consumer price index excluding food and energy is expected at 2.5% year-on-year, after 2.4% a month earlier. Data on the producer price index and retail sales for September are due on Thursday.