10-year Treasury yield reaches 4%

By Steve Goldstein

The key U.S. 10-year Treasury yield reached 4% on Monday, as investors continued to reassess their view of the U.S. economy following stronger-than-forecast jobs data.

What's happening

-- The yield on the 2-year Treasury BX:TMUBMUSD02Y was 4%, up 6.7 basis points. Yields move in the opposite direction to prices.

-- The yield on the 10-year Treasury BX:TMUBMUSD10Y was 4%, up 4 basis points.

-- The yield on the 30-year Treasury BX:TMUBMUSD30Y was 4.27%, up 2.3 basis points.

What's driving markets

The bond-market sell-off continued into Monday following Friday's data showing the unemployment rate falling to 4.1% while nonfarm payrolls rose by 254,000.

This week will feature inflation data, notably Thursday's release of the consumer-price index.

"If inflation comes in lower than expected, it could ease pressure on bond yields and create some optimism around rate cuts. However, continued strong economic data could lead to further rises in bond yields as markets price in fewer rate cuts," said strategists at Saxo Bank.

This week's bond auctions commence with $58 billion of 3-year notes on offer on Tuesday.

-Steve Goldstein

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10-07-24 0715ET

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