US 30-Year Treasury Rises to 4.1% as Price Falls
The yield on the 10-year US Treasury note has been steadied above 3.8% as investors look forward to key economic data. The 30-year US Treasury yield rose 0.005 percentage point to 4.106% as the price fell.
Analysts said upcoming data would offer more insights on whether markets, and traders should expect a 25- or 50-basis-point rate cut from the Fed
The latest initial jobless claims, a second estimate for Q2 gross domestic product and July’s PCE price index report will be carefully scrutinized by the market.
On Monday, data showed that durable goods orders rebounded more than expected in July. Meanwhile, US bond yields remained under pressure from expectations that the Fed will start cutting interest rates soon.
Fed Chair Powell said in his Jackson Hole address on Friday that the time has come to adjust policy amid rising risks to the labor market, while expressing confidence that inflation will return to the central bank’s 2% target.
Traders are pricing in about 100 basis points in total easing this year. The 10-year Treasury yield last traded at 3.808%, little changed Friday, according to Tradeweb.
Federal Reserve Chair Jerome Powell on Friday delivered his clearest message yet to financial markets that the time has arrived for lower interest rates.
It’s a moment Powell has been warming up to for months, prompting investors to consider which parts of markets still have room to run as the Fed moves closer to its first rate cut in four years.
Powell said the Fed wouldn’t welcome further cooling in the labor market, although he stressed that future decisions would depend on upcoming data. #US 30-Year Treasury Rises to 4.1% as Price Falls
