What’s going on here?
Longer-dated US Treasury yields dipped slightly ahead of key labor market data and a crucial Federal Reserve policy statement.
What does this mean?
Investors are on edge as they anticipate significant labor market data starting with Tuesday’s Job Openings and Labor Turnover Survey (JOLTS) report, followed by the key government payrolls report on Friday. Meanwhile, the Federal Reserve is set to announce its next policy stance on July 31, 2024, with markets anticipating a potential rate cut, fully priced in for September according to CME’s FedWatch Tool. As a result, yields on the benchmark 10-year Treasury note fell to their lowest levels since mid-July, settling at 4.184%, and the 30-year bond at 4.432%.
Why should I care?
For markets: Rate cut hints shake the bond market.
The possibility of a September rate cut has led to an interesting dynamic in the bond market, as evidenced by the slight drop in…
