The 10-year Treasury yield is down by 2bps and is on track for its third straight down day. Last Friday’s weak nonfarm payrolls data for July sank the yield as the odds for a rate cut in September grew. The current yield, at 4.197%, is now at its lowest level since April 30.
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“This period has delivered the worst rolling five-year total return for 10-year Treasuries (and historical proxies) on record,” said Deutsche Bank (DB) global head of economics and thematic research Jim Reid.
10-Year Treasury Yield Drops as Investors Assess Economic Outlook
The yield on the 10-year bond and its price move in opposite directions. When the price of a bond goes down, the yield goes up. Yields are falling today as investors assess the risks of the trade war and a labor market that could potentially be showing signs of weakness.
Rising inflation also poses a problem for equities. If inflation rears its ugly head as a result of tariffs, demand for the 10-year bond could spike as investors rush to safety.
Track the 10-Year Treasury yield and other key economic metrics with TipRanks’ Economic Indicators Dashboard.
