US treasury bill futures fall, with reports that the US is sending dozens of aerial refueling aircraft to Israel.

US Treasury futures fell, with the yield curve continuing to flatten. It was reported that the US was increasing its deployment of dozens of aerial tankers to Israel on the eve of possible military escalation. The decline on that day was mainly focused on the front end of the yield curve, pushing the yield spread between 2-year/10-year and 5-year/30-year Treasury bonds to narrow by about 3 basis points and 2 basis points respectively, touching intraday lows. The 2-year Treasury bond yield in the US rose by about 2 basis points from Thursday's close, while long-term bond yields slightly declined. Overnight index swap rates tied to the Fed meeting showed that the market has priced in a 4 basis point rate hike premium for the July meeting, which was basically in line with earlier in the day; the market is expecting a cumulative rate hike of about 30 basis points by December, higher than the estimated 27 basis points at Thursday's close.