10-year Treasury yield dips as traders weigh state of U.S. economy after latest data

10-year Treasury yield dips as traders weigh state of U.S. economy after latest data

US News

U.S. Treasury yields were lower Friday as investors continued to assess the state of the U.S. economy after labor data buoyed sentiment.

The yield on the 10-year Treasury was around 6 basis points lower at 3.936% at 10:16 a.m. ET, nonetheless holding near the level it was at last week before a weak U.S. jobs report helped trigger a run of global market volatility.

The yield on the 2-year note was down 2 basis points on the day at 4.024%.

Yields and prices move in opposite directions, and one basis point equals one one-hundredth (0.01%) of a percent.

Initial claims for unemployment insurance totaled 233,000 in the latest week, the Labor Department reported Thursday, a lower figure than expected.

That helped drive the S&P 500 index to its best day since 2022, also boosting Asia-Pacific and European markets on Friday.

Traders meanwhile trimmed bets on a 50 basis point rate cut from the Federal Reserve in September, now pricing in roughly even odds of that or a 25 basis point move lower, according to CME’s FedWatch tool.

Fresh data is in short supply until Tuesday, when the core producer price index is due.

Read original source here.

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