US bond market rallies after weak jobs data, with 10-year yield at lowest since April

The 10-year US Treasury yield dropped sharply on Monday, falling over 2 basis points to 4.059%. That move came just days after it hit a major high above 5%, a level not seen since ￰0￱ that might not sound huge, but in bond markets, it’s actually a meaningful dip, especially since the 2-year Treasury yield is also plunging, down over 2 basis points to 3.486%. And the 30-year Treasury yield tanked even harder, shedding over 4 basis points to 4.726%. For the uninitiated, a single basis point equals 0.01%, and yields move opposite to prices, ￰1￱ are awaiting two critical inflation reports this week for more insight into the health of the economy, after weaker-than-expected hiring data on ￰2￱ producer price index (PPI) report for August is due out Wednesday morning, followed by the consumer price index (CPI) on ￰3￱ core CPI, which strips out food and energy, is expected to rise 0.3% month-over-month in August, according to a Reuters poll.

There’s also a jobs market update coming on Tuesday when the Bureau of Labor Statistics publishes its preliminary benchmark revision to employment data from March, along with first-quarter 2025 data from the Quarterly Census of Employment and ￰4￱ data and jobs report hammer the 10-year yield The Federal Reserve is currently in its usual media blackout ahead of its next ￰5￱ that hasn’t stopped the speculation from ￰6￱ Bank economists said in a note Monday that these CPI and PPI numbers will directly affect pricing outlooks, especially with all the noise around ￰7￱ Yardeni, who runs Yardeni Research, said this inflation data could stir debate over how fast the Fed keeps cutting or holding ￰8￱ let’s zoom ￰9￱ the past week, bond markets worldwide have been under ￰10￱ on long-term debt kept climbing… except in the ￰11￱ Friday, the 10-year yield sank to its lowest since April, after new jobs data showed slower hiring in August than ￰12￱ Matejka from JPMorgan said : “Taking away the knee-jerk yields crash seen around the ‘Liberation Day’ de-risking, current U.

S. 10-year at sub 4.1% is at lows of the ￰13￱ think this is set to continue, partly due to softening labor market data flow.” Compare that to what’s happening ￰14￱ in Japan and the UK are on ￰15￱ Japanese 30-year bond just hit a record ￰16￱ U. K.’s 30-year touched levels not seen in 27 ￰17￱ for a moment last week, the U. S. 30-year itself peeked above 5%, the highest since ￰18￱ that surge didn’t ￰19￱ now, everyone’s staring down Thursday’s CPI like it’s the Super Bowl of inflation ￰20￱ it comes in softer than expected, we’re probably looking at more downward pressure on Treasury ￰21￱ it’s too hot, all bets are off. Don’t just read crypto ￰22￱ ￰23￱ to our newsletter.

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