The 10-year US Treasury yield closed near 5.22%, marking its highest level since 2002, following remarks from President Trump. According to FX Street, the yield rose after Trump stated on Truth Social that the US will not launch an attack on Iran before the upcoming midterm elections.
This announcement appeared to ease geopolitical tensions, influencing bond market dynamics as investors reassessed risk. The yield's move reflects the market's sensitivity to political developments ahead of significant US elections.
For Japanese investors, these shifts in US Treasury yields are critical, as they impact global bond markets and can influence the yen-dollar exchange rate and equity valuations.