US 10-Year Yield Near 20-Month High, Sanctions Widen

Yields on the 10-year U.S. Treasury hovered around 4.72–4.75% as concerns over deficits and heavy corporate debt issuance keep long-dated borrowing costly, with the Treasury doubling liquidity-support buyback operations. The move comes amid oil supply disruptions linked to the Iran war and global tariffs, contributing to inflation pressures that the Fed is trying to restrain. Markets await Jackson Hole and the July personal consumption expenditures inflation update, with futures on the S&P 500 and other indices showing declines as investors reassess the economic outlook. The Commerce Department’s second estimate of Q2 growth pointed to a sluggish 1.5% pace, underscoring a fragile economy and the need for clearer policy signals. The Fed’s path remains uncertain, with a rate hike at the upcoming meeting appearing unlikely but not impossible, and potential rate-dissent signals indicating tightening bias; geopolitics add another layer of risk, including sanctions linked to Iran and possible penalties on a major financial institution.