Treasury Yields Rise as Oil Surge, Profit-Taking Weigh on Bonds

Treasuries retreated Friday after the previous session's rally, with the benchmark 10-year yield climbing 3.6 basis points to 4.988%. The pullback followed Thursday's strength, which had pushed the 10-year yield below 5% for the first time in a month, prompting likely profit-taking. A nearly 4% surge in U.S. crude oil futures, which jumped back well above $100 a barrel, also pressured bonds. Oil prices were driven higher by continued Houthi attacks on Saudi Arabia and reports that the U.S. and Israel plan to renew military operations against Iran after the midterm elections. Traders are now focused on next week's Federal Reserve monetary policy meeting. The central bank is scheduled to announce its decision next Wednesday and is widely expected to leave rates unchanged, though a quarter-point hike is still anticipated at the December meeting.