U.S. Treasury Yields Fall Amid Inflation Concerns and Iran Talks

U.S. Treasury yields fell on Friday after a week of volatility that saw borrowing costs rise to multi-year highs in response to renewed concerns about inflation.

The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — fell more than 2 basis points to 4.564%.

The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, was largely flat at 4.083%. The longer-dated 30-year Treasury bond yield fell more than 2 basis points to 5.086%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

The 30-year Treasury yield briefly climbed above 5.19% earlier this week, reaching its highest level since 2007, before easing on Thursday.

Meanwhile, the U.S. and Iran have signaled progress in talks to end the war, but the combatants remain at loggerheads over Tehran's enriched uranium stockpile and tolls on the strategically vital Strait of Hormuz.

U.S. Secretary of State Marco Rubio on Thursday said there were "good signs" that an agreement to end the conflict is in sight, but warned any such deal would be "unfeasible" if Iran pursues measures to permanently control shipping through the Strait of Hormuz.

"No one in the world is in favor of a tolling system. It can't happen [and] it would be unacceptable," Rubio told reporters in Miami, Florida.

During a ceremony on Friday, President Donald Trump is expected to swear in Kevin Warsh as Federal Reserve chair, a White House official told CNBC.

The move will end a process that started in the summer of 2025 and culminated last week with the Senate confirming Warsh in a nearly total party-line vote.

— CNBC's Sam Meredith and Jeff Cox also contributed to this report.