By Jamie Chisholm
Bond prices dipped early Monday after growth fears last week pushed benchmark yields to their lowest in two and a half months.
What’s happening
— The yield on the 2-year Treasury BX:TMUBMUSD02Y climbed by 1.5 basis points to 4.022%. Yields move in the opposite direction to prices.
— The yield on the 10-year Treasury BX:TMUBMUSD10Y rose 2.3 basis points to 4.243%.
— The yield on the 30-year Treasury BX:TMUBMUSD30Y added 1.4 basis points to 4.522%.
What’s driving markets
The 10-year Treasury yield finished Friday at 4.228%, according to Dow Jones data, its lowest closing level since Dec. 10, after dropping 33.8 basis points in February.
That was the biggest monthly retreat for yields since Dec. 2023 and came in response to growing concerns that the U.S. economy is slowing.
“It is worth noting that although Trump’s Treasury secretary has said that a lower 10-yield is important for the administration, we think that the biggest driver of lower U.S. yields is the weakening in U.S. economic data,” said Kathleen Brooks, research director at XTB.
A more upbeat mood across global markets at the start of the week is reducing demand for the perceived safety of sovereign paper, nudging Treasury yields off their lows.
Investors have a busy week of potential market catalysts to navigate, including a slew of U.S. jobs reports culminating in the nonfarm payroll data on Friday. The European Central Bank will deliver its monetary policy decision on Thursday, and economists expect another 25 basis point interest rate cut.
On Monday, data include the S&P final U.S. manufacturing PMI for February, released at 9:45 a.m. Eastern, followed at 10:00 a.m. construction spending for January and ISM manufacturing for February.
St. Louis Fed President Alberto Musalem speaks at the NABE conference at 12:00 p.m.
-Jamie Chisholm
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
03-03-25 0341ET
Copyright (c) 2025 Dow Jones & Company, Inc.