On Friday, the market is awaiting the release of key employment data, causing US Treasury yields to edge slightly lower. The 10-year Treasury yield, a core benchmark for mortgage, auto loan, and credit card rates, fell more than 1 basis point to 4.656%.
Overall, yield movements across short and long-term maturities were limited: The 2-year Treasury yield, which closely tracks the Federal Reserve's short-term policy direction, declined over 1 basis point to 4.226%. The 30-year Treasury yield, often influenced by broad geopolitical factors, dipped less than 1 basis point to 5.206%.
Terminology note: 1 basis point (bp) = 0.01%. Bond yields and bond prices move inversely.
Brief overview of US Treasury yields by maturity:
US 10-year Treasury: 4.658%, change -0.012
US 1-month Treasury: 3.706%, unchanged
US 1-year Treasury: 4.041%, change -0.018
US 2-year Treasury: 4.226%, change -0.019
US 30-year Treasury: 5.208%, change -0.004
US 3-month Treasury: 3.827%, change -0.001
US 6-month Treasury: 3.950%, change -0.004
International oil prices also weakened in tandem, as traders await the nonfarm payrolls data to assess the state of the US economy and its potential impact on the Federal Reserve's interest rate decisions.
Economists anticipate: Nonfarm payrolls in July will add 83,000 jobs, with the unemployment rate remaining unchanged at 4.2%.
Tressis Chief Economist Dan Lacalle stated that rate hikes will weigh on the US economy, with the labor market bearing the brunt of the impact. He noted on the "European Financial Morning Live" program on Friday: "There is no reason for the Fed to continue raising rates. There are no signs of an overheating US economy. Core CPI and PCE price indicators both show that raising rates cannot effectively control energy prices."
Commodities market: West Texas Intermediate (WTI) crude futures recently fell 0.9% to $76.63 per barrel, while Brent crude futures dropped 0.9% to $81.76 per barrel.
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Editor: Guo Mingyu