this U.S. 10-Year Treasury Bond It rose on Thursday as dovish minutes from the Federal Reserve’s latest meeting and sharp downgrades in preliminary non-farm data bolstered expectations for a rate cut next month.
The 10-year Treasury yield rose more than 2 basis points to 3.799%, while U.S. Treasury yields rose more than 2 basis points. 2-Year Treasury Bond It rose about 1 basis point to 3.929%.
Yields and prices move in opposite directions. 1 basis point equals 0.01%.
Market participants firmly expect the Fed to cut interest rates at its next meeting. Traders now see about a 66% chance of a 25 basis point rate cut in September, with just over a third expecting a 50 basis point cut. CME Group’s FedWatch Tool.
This comes shortly after the release of a summary of the minutes from the Federal Reserve’s July meeting explain “The vast majority” of attendees “believed that an easing of policy at the next meeting may be appropriate if data continues to be in line with expectations.”
Investors also expressed concern on Wednesday Significant downward revision U.S. hiring data showed that there were 818,000 fewer jobs in the 12 months to March 2024 than initially reported.
Attention now turns to comments made at the annual Jackson Hole symposium, which opens Thursday. Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on Friday.
On the data front, the latest data on weekly jobless claims will be released around 8:30 a.m. ET on Thursday.
August manufacturing purchasing managers’ index (PMI) and August services PMI, July existing home sales data and the Kansas City Federal Reserve Bank’s August survey data will be released later.
—CNBC’s Alex Haring, Sophie Kiderlin and Jesse Pound contributed to this report.
