The yield on the US 10-year Treasury note fell below 4.2% on Tuesday, declining for a second straight session as investors awaited a series of key US economic releases this week that could influence expectations for Federal Reserve policy. The upcoming data include delayed reports on employment and inflation, as well as retail sales figures.
White House economic adviser Kevin Hassett said on Monday that US job gains could slow in the coming months, citing weaker labor force growth and rising productivity. Markets broadly expect the Fed to leave interest rates unchanged in March, with futures pricing in two rate cuts later in the year.
Treasury yields edged lower even as reports surfaced that Chinese regulators had urged domestic financial institutions to limit their holdings of US Treasuries in order to reduce concentration risks and lessen their exposure to uncertainty surrounding US economic policy.
