10-year Treasury yield falls below 4% for the first time since February

10-year Treasury yield falls below 4% for the first time since February


Traders work on the floor of the New York Stock Exchange on July 24, 2024.

Spencer Platt | Getty Images

Treasury yields fell Thursday as investors digested comments from Federal Reserve Chair Jerome Powell, who suggested a September rate cut was on the table, along with a jump in U.S. jobless claims.

The benchmark 10-year Treasury yield traded at 3.997%, reaching its lowest level since Feb. 2. Meanwhile, the 2-year Treasury yield slipped to 4.23%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

Yields fell on Wednesday after Powell hinted at a September rate cut following the central bank’s July meeting.

“The broad sense of the committee is that the economy is moving closer to the point at which it would be appropriate to reduce our policy rate,” he said.

Powell added the Fed would weigh economic data, expectations and risks alongside inflation and labor market signals, and respond accordingly. Depending on these factors, “a reduction in our policy rate could be on the table as soon as the next meeting in September,” he said.

Data released Thursday morning hinted at a souring of the economic picture. Initial jobless claims surged to 249,000 for the week that ended July 27, well above a Dow Jones forecast of 235,000. Continuing claims also rose to their highest level since November 2021.

On top of that, the ISM manufacturing index came in at 46.8. That is well below a Dow Jones estimate of 48.9. A reading below 50 indicates a contraction in economic activity for the sector.

“The ISM shortfall is just the latest sign of cooling domestic growth conditions, and another sign that the Fed should have commenced its easing cycle yesterday instead of waiting until Sept,” wrote Adam Crisafulli of Vital Knowledge.

Three Fed meetings remain on the calendar for this year.



Source

Treasury yields tick lower as Trump’s spending bill in focus
World

Treasury yields tick lower as Trump’s spending bill in focus

U.S. Treasury yields moved lower as investors monitored whether the Senate would pass President Donald Trump’s divisive spending bill over the next few hours. At 3:59 a.m. ET, the benchmark yield was 2 basis points lower at 4.257%, and the 30-year yield moved 3 basis points lower to 4.814%. Meanwhile, the  2-year yield was little changed […]

Read More
British pound gains as UK-U.S. trade deal cuts autos, aviation tariffs
World

British pound gains as UK-U.S. trade deal cuts autos, aviation tariffs

Join CNBC for live updates on European markets. Source

Read More
CNBC Daily Open: The S&P 500’s high is a gift from Trump that can be taken away
World

CNBC Daily Open: The S&P 500’s high is a gift from Trump that can be taken away

U.S. President Donald Trump takes part in a press conference on recent Supreme Court rulings in the briefing room at the White House on June 27, 2025, in Washington, DC, U.S. Joe Raedle | Getty Images News | Getty Images Something I rarely, if ever, say: What a wonderful Monday morning! On Friday stateside, the […]

Read More