2025.08.0713:20:27UTC+00US 10-Year Yield Holds Near 3-Month Low

On Thursday, the yield on the 10-year U.S. Treasury note stood at 4.23%, remaining near the three-month low of 4.19% observed on August 5th. This stability comes amidst growing signs of an economic slowdown, bolstering expectations for several interest rate reductions by the Federal Reserve this year. In an unexpected turn, continuing jobless claims reached their highest level in over three years, heightening worries about a rising unemployment rate in July, even though the labor force shrank. Moreover, revisions for June and May nonfarm payrolls indicated a reduction of 258,000 jobs, while ISM data highlighted widespread employment declines. These new statistics underscore the significant effects of tariff threats and ambiguous economic policies on the U.S. labor market in recent months, challenging previous perceptions of its robustness. Additionally, the Treasury's decision to increase buyback volumes for notes, bonds, and TIPS contributed to the reduction in yields. However, persistent inflation concerns led to weak demand for the newly auctioned 10-year note by the Treasury.