FX.co ★ US 10-Year Yield Holds Decline

On Thursday, the yield on the US 10-year Treasury note stabilized around 4.37%, maintaining its losses after a decline of approximately 10 basis points in the previous session. Investors remained on edge as they awaited the release of the latest weekly jobless claims and the highly anticipated nonfarm payrolls report, which is due on Friday. On Wednesday, yields experienced a significant drop as a series of lackluster economic data prompted renewed concerns about the health of the US economy. The ADP employment report disclosed the addition of only 37,000 private-sector jobs in May, falling short of expectations and marking the weakest performance in over two years. This fueled fears that persistent trade policy uncertainties are impacting hiring trends. Additional downward pressure arose from the ISM services PMI results, which indicated that the sector contracted in May for the first time in nearly a year. Concurrently, President Trump continued to advocate for Federal Reserve rate cuts, while policymakers remained cautious due to heightened uncertainty and mixed economic signals.