FX.co ★ US 10-Year Treasury Yield at One-Month Lows

The yield on the US 10-year Treasury bond remained around 4.36% on Thursday, nearing its lowest point in a month, as traders evaluated a series of predominantly weak economic indicators. Initial jobless claims rose unexpectedly to 247,000, the highest since October, suggesting a possible cooling in the labor market. This uptick followed Wednesday's underwhelming ADP report, which revealed that the private sector only added 37,000 jobs in May, marking the smallest monthly increase in nearly two years. Concurrently, unit labor costs increased more than initially estimated, exacerbating inflation concerns. Additionally, the ISM Services PMI unexpectedly slid into contraction territory last month for the first time in almost a year, with price pressures reaching their highest level since 2022. Looking forward, market participants are concentrating on Friday’s nonfarm payrolls report for deeper insights into labor market trends. Currently, traders are anticipating at least two interest rate cuts by the Federal Reserve this year, with the first anticipated in September.