US Treasury yields have hit a seven-month low as investors digest weaker than expected economic data and growing concerns over a possible recession. On Wednesday, US government debt rallied, pushing Treasury yields to their lowest level in seven months. The yield on the 10-year Treasury note fell to 1.94%, while the yield on the 30-year Treasury bond dropped to 2.40%.
Investors are closely watching economic data for signs of a slowdown, and recent reports have sparked concerns over the strength of the US economy. The Institute for Supply Management (ISM) reported on Tuesday that its measure of non-manufacturing activity fell to its lowest level in three years, while the Labor Department's monthly jobs report showed that the US added just 130,000 jobs in August, well below expectations.
While the job market remains strong, with unemployment hovering near a 50-year low, investors are worried that the trade war with China and other global economic headwinds could push the US into a recession. The yield curve, a closely watched measure of the difference in yields between short-term and long-term Treasuries, has inverted several times this year, indicating that investors see a higher risk of a recession in the next year or two.
On Tuesday, Treasury yields were mixed as investors assessed recent labor market data in order to gauge the possibility of a recession. The yield on the 10-year note rose slightly to 1.50%, while the yield on the 30-year bond fell to 1.98%. Meanwhile, the yield on the two-year Treasury note, which is more sensitive to changes in interest rates, fell to 1.44%.
U.S. Treasury yields were slightly lower on Tuesday as concerns over weaker than expected job openings data, which signaled a potential slowdown in hiring, weighed on investor sentiment. The yield on the 10-year Treasury note fell to 1.53%, while the yield on the 30-year Treasury bond dropped to 2.02%.
On Wednesday, Treasury yields fell as traders sorted through recent readings on the labor market to gauge the possibility of a recession. The yield on the 10-year note fell to 1.46%, while the yield on the 30-year bond fell to 1.95%.
The Nasdaq Composite fell for a third-straight losing session on Wednesday as investors shifted away from growth stocks amid signs that the US economy may be slowing down. The tech-heavy index fell 1.1% to close at 7,874.16, while the S&P 500 fell 0.7% to close at 2,893.06.
Bond yields surged on Tuesday as Federal Reserve Chair Jerome Powell said interest rates may have to remain higher for longer to quell inflationary pressures. The yield on the 10-year Treasury note rose to 1.55%, while the yield on the 30-year bond rose to 2.06%.
U.S Treasury yields declined on Monday as investors assessed the state of the economy after the collapse of Silicon Valley Bank. The yield on the 10-year note fell to 1.61%, while the yield on the 30-year bond fell to 2.13%.
The rate on some US Treasury bills, considered the safest investment in the world and just as good as cash, rose above 5% this week, raising concerns among investors about the safety of the US government's debt. The yield on the 3-month Treasury bill rose to 2.09%, while the yield on the 2-year Treasury note rose to 1.60%.
US government bond prices rallied on Wednesday after the Federal Reserve signaled it was close to the end of its cycle of interest rate cuts. The yield on the 10-year Treasury note fell to 1.94%, while the yield on the 30-year Treasury bond dropped to 2.40%.
Overall, the recent movement in Treasury yields reflects growing concerns among investors about the strength of the US economy and the possibility of a recession. As investors weigh economic data and assess the impact of global economic headwinds, Treasury yields are likely to remain volatile in the coming weeks and months.