Treasury yields fall
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The Treasury yield curve aids in predicting economic trends and interest rates. Gain insights into its impact on investment strategies.
U.S. Treasury yields jumped Wednesday in response to January job creation that was more than double what Wall Street was expecting.
Treasury yields have pushed lower on Friday, touching their lowest levels of the year so far, after the equity market opened for business. Meanwhile, interest-rate futures traders were pricing in slightly higher expectations for three Federal Reserve interest-rate cuts in 2026.
Treasury yields rose in Asia trading hours ahead of U.S. January CPI inflation data.
U.S. Treasury yields were lower on Thursday, in the wake of data on the labor market that showed new applications for unemployment benefits decreased last week.
Fed funds futures pricing shifted after the weaker-than-expected report, with traders pushing up the chances of a March cut to 21.6% from 17.2% a day before, nudging April cut odds higher as well (36.9% vs. 32.2%), but still viewing June as the first meeting where a quarter-point cut is the more likely outcome, according to CME Group data.
Long-dated U.S. Treasury yields will hold steady in the near term but rise later this year on inflation and Federal Reserve independence concerns, while short-dated yields edge down on Federal Reserve rate cut bets,
Thursday’s “risk-off” trade is spurring a rally in U.S. Treasurys, driving the yield on the benchmark 10-year note to a two-month low. The yield on the 10-year note recently hit as low as 4.102%, according to Traeweb,
U.S. Treasury yields jump after January jobs report beats forecasts, pushing Fed rate-cut expectations to July.