Treasury Yields Climb

Published July 24, 2026

U.S. Treasury yields moved higher early in the week as investors monitored current developments in Iran and waited for the release of the latest economic data. Yields rose at the end of the week as the unemployment data report showed a resilient labor market.

On Friday, S&P Global released its flash U.S. Purchasing Managers’ Index (PMI) for July. The report measures change in economic activity in the business sector and is used as an indicator of U.S. economic activity. According to the report, the flash U.S. Manufacturing PMI for July was 53.8, down slightly from 53.9 in June but above analysts’ forecast of 54.4. The flash U.S. Services PMI increased to 53.6 in July, up from June’s level of 51.2.

"The month saw an encouraging return to hiring by companies, with employment rising for the first time in three months," said chief business economist at S&P Global Market Intelligence, Chris Williamson. "However, some of this improvement may prove short-lived as July saw hospitality spend boosted by the FIFA World Cup and USA 250 anniversary activities. It was also worrying – though not unexpected – to see manufacturing growth weaken as some of the stock building seen in prior months showed signs of fading."

The benchmark 10-year Treasury note yield opened the week of July 20 at 4.55% and traded as high as 4.72% on Thursday. The 30-year Treasury bond opened the week at 5.07% and traded as high as 5.20% on Thursday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment were 187,000 for the week ending July 18. This was down 22,000 from the prior week and fell below analysts’ expectations of 212,000. Continuing unemployment claims decreased by 2,000 to 1.80 million.

“The economy may be heating up today, but the path ahead for the employment markets could still be rockier with the escalation of the war in the Middle East causing a u-turn in energy prices virtually overnight this week,” said chief economist at FWDBONDS, Chris Rupkey. "Half of Federal Reserve officials are concerned enough about the inflation risks to pencil in a rate hike this year, but they still need to keep an eye out for labor market risks where jobs are increasingly hard to get especially for recent graduates."

The 10-year Treasury note yield finished the week of 7/20 at 4.69%, while the 30-year Treasury note yield finished the week at 5.16 %.