US 10-Year Treasury Yield Hovers Near Two-Month Lows
The yield on the US 10-year Treasury note fell to 4.87% on Thursday, hovering near two-month lows, as a sharp equity market sell-off triggered a flight to safety. Investors continued to scale back exposure to technology stocks amid concerns over the potential implications of a Democratic blue wave for AI and data centre investment. Following the midterm election results, the 10-year yield had already declined by around 8bps in the previous session. Meanwhile, investors are turning their attention to Friday’s US jobs report for further clues about the health of the labour market. Recent data painted a mixed but relatively resilient picture, with private businesses adding 86K jobs in October, according to ADP, while initial jobless claims fell to their lowest level in 57 years. In addition, third-quarter productivity growth came in stronger than expected. Against this backdrop, markets are pricing in an approximately 75% probability of a 25bps Fed rate hike next month.
The yield on the US 10-year Treasury note fell to 4.87% on Thursday, hovering near two-month lows, as a sharp equity market sell-off triggered a flight to safety. Investors continued to scale back exposure to technology stocks amid concerns over the potential implications of a Democratic blue wave for AI and data centre investment. Following the midterm election results, the 10-year yield had already declined by around 8bps in the previous session. Meanwhile, investors are turning their attention to Friday’s US jobs report for further clues about the health of the labour market.
Recent data painted a mixed but relatively resilient picture, with private businesses adding 86K jobs in October, according to ADP, while initial jobless claims fell to their lowest level in 57 years. In addition, third-quarter productivity growth came in stronger than expected. Against this backdrop, markets are pricing in an approximately 75% probability of a 25bps Fed rate hike next month.