US 10-Year Treasury Yield Sinks to 15-Month Low
The yield on the US 10-year Treasury note fell below the 3.75% threshold on Thursday, it’s lowest in nearly 15 months, as an increasingly pessimistic economic backdrop consolidated bets of a large magnitude of rate cuts by the Fed this year.
The yield on the 2-year Treasury fell 5.1 basis points to 3.718%, from 3.769% on Wednesday. Wednesday’s closing level was the lowest since May 4, 2023.The yield on the 10-year Treasury dropped 3.8 basis points to 3.730%, from 3.768% on Wednesday.
Wednesday’s closing level was the lowest since July 19, 2023.The yield on the 30-year Treasury fell 2.5 basis points to 4.041%, from 4.066% on Wednesday.
The ADP national employment report showed that private businesses added less than 100 thousand jobs in August, well below market expectations of 145 thousand, while another report by Challenger and Gray showed a surge in the number of job cuts.
This raised concerns that tomorrow’s job report might point to another soft number, aligning with concerns of a softer labor market that triggered a clear dovish pivot by Fed Chair Powell in his Jackson Hole speech.
Consequently, markets increased their bets that the US central bank could deliver 125bps through the three remaining decisions this year, compared to 100bps from the end of August. In the meantime, the yield on the 2-year note fell below that of the 10-year for the first time since 2021. #US 10-Year Treasury Yield Sinks to 15-Month Low CBN Defends Naira with $39m in Forex Market
