US 10-Year Treasury Yield Edges Lower as Investors Await Key Economic Data

The yield on the U.S. 10-year Treasury note slipped below 4.2% on Tuesday, extending losses for a second consecutive session as investors remained cautious ahead of a series of key U.S. economic releases expected later this week.

Markets are closely watching delayed employment and inflation data, alongside upcoming retail sales figures, which could play a decisive role in shaping expectations for future monetary policy from the Federal Reserve.

On Monday, White House economic adviser Kevin Hassett said that U.S. job growth could slow in the coming months, citing weaker labor force expansion and rising productivity as factors likely to moderate employment gains. His remarks reinforced expectations that economic momentum may cool without triggering a sharp downturn.

The Federal Reserve is widely expected to keep interest rates unchanged at its March meeting, while futures markets continue to price in two interest-rate cuts later this year, reflecting growing confidence that inflationary pressures may gradually ease.

Treasury yields declined despite reports that Chinese regulators have advised domestic financial institutions to limit their exposure to U.S. Treasury securities, a move aimed at reducing concentration risk and insulating portfolios from uncertainty surrounding U.S. economic policy. Market participants, however, appeared to focus more on domestic macroeconomic signals than on overseas demand dynamics.

Analysts note that recent movements in long-term yields reflect a broader recalibration of expectations, as investors balance signs of slowing growth against the prospect of an extended period of restrictive—but stable—monetary policy.

Source

Trading Economics — U.S. Government Bond Yields & Macro Data
https://tradingeconomics.com/stream?i=economy