10-year Treasury yield dips as traders weigh state of U.S. economy after latest data
➖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 3.94% at 4 p.m. ET. Nonetheless, it was 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 up less than 1 basis point on the day at 4.051%.
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 economic data is in short supply until Tuesday, when the producer price index reading for July is due.
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