Treasury yields were little changed on Friday as investors closely monitored Middle East developments on the final trading day of the month, amid signs that a lasting U.S.-Iran ceasefire agreement could now be in sight.
The 10-year U.S. Treasury note yield — the key benchmark for mortgages, auto loans and credit card debt — was down more than 1 basis point at 4.443%. The 2-year Treasury note yield, which is typically more sensitive to short-term Federal Reserve interest rate decisions, also fell more than 1 basis point to 4.008%.
Meanwhile, the longer-dated 30-year Treasury bond yield, which tends to react mainly to geopolitical risks, declined less than a basis point to 4.98%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Borrowing costs fell during Thursday's session, with the 10-year Treasury yield sliding more than 3 basis points as energy prices eased on reports that Washington and Tehran have largely agreed on the terms of a 60-day memorandum of understanding to extend the ceasefire.
The deal, which also involves negotiations on Iran's nuclear program, still needs sign-off from President Donald Trump. He said Friday that he is meeting in the Situation Room "to make a final determination" regarding the deal.
The price of West Texas Intermediate futures is now below $90 a barrel, sliding 1.73% on Friday to settle at $87.36 per barrel. Brent — the international oil price benchmark — settled 1.77% lower at $92.71 a barrel.
The retreat comes after traders probed several data releases on Thursday that suggested inflation remains a key concern for the U.S. economy. Most notably, the personal consumption expenditures price index — the Fed's preferred inflation gauge — was up 3.8% year-on-year in April.
There are no new economic data releases expected on Friday.
— CNBC's Kevin Breuninger contributed to this report.