US 10-Year Treasury Yield Dips Ahead of Powell Speech
The yield on the US 10-year Treasury note dipped near 3.8% on Thursday, hovering near two-week lows as investors braced for Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium later this week to gauge the path for interest rate cuts.
The latest Fed minutes revealed that “the vast majority” of members agreed that “if the data continued to come in as expected, it would likely be appropriate to ease policy at the next meeting.”
Nonfarm payrolls in the US were also revised downwards by nearly 820 thousand in the one year to March 2024, magnifying concerns about the labor market.
Markets are fully priced in for September rate cut, favoring a 25 basis point reduction. Nearly 100 bps in total easing is also projected this year. The yield on the 2-year Treasury dipped by less than 1 basis point to 3.938%. Yields move in the opposite direction to prices.
The yield on the 10-year Treasury fell less than 1 basis point to 3.802%.The yield on the 30-year Treasury dropped less than 1 basis point to 4.074%.
During trading hour, the 10-year US Treasury yield sat around the 3.80% mark, near its lowest level of 2024, after minutes of the July 30-31 meeting of the policy-setting Federal Open Market Committee, released on Wednesday, showed most officials believed an interest rate reduction next month is justified in light of slowing inflation and a weakening jobs market. #US 10-Year Treasury Yield Dips Ahead of Powell Speech
