Treasury yields took a significant dive on Friday morning, dropping nearly 20 basis points following the release of a weak July jobs report. The yield on the 10-year Treasury ended the week just under 3.80%, marking a sharp decline from the start of the week.
What A Week: Yields opened Monday morning at 4.19% and really began to fall after Federal Reserve Chair Jerome Powell indicated the possibility of a rate cut in September. The decline accelerated after the July jobs report revealed lower-than-expected job creation, further pushing rates down by 40 basis points for the week.
One Hundred: The 10-year yield has now dropped almost 100 basis points from its peak of 4.70% at the end of April. This rapid decline reflects growing concerns about the economy’s strength and the potential for the Federal Reserve to adjust its monetary policy in response to weakening economic indicators.
Looking Ahead: Investors are keenly monitoring both domestic and global markets for signs of economic weakness. The recent weak jobs report has heightened concerns about the health of the U.S. economy, prompting a reassessment of monetary policy expectations. Meanwhile, global markets are also under scrutiny as geopolitical tensions, trade uncertainties, and economic slowdowns in key regions could further influence market sentiment and economic stability.
