Long-Term U.S. Treasury Yields Set for Significant Weekly Drop

Long-term U.S. Treasury yields are poised for their largest weekly decline since March 2020 and November of last year. This comes just two weeks after reaching their highest levels in several years.

Bond Market Reacts to Concerns About Slowing U.S. Economy

The bond market's rapid turnaround is driven by a growing belief that the U.S. economy is slowing down, which will likely lead to the Federal Reserve halting its interest rate hikes and addressing the inflation issue. On Friday, Treasury yields continued to decrease as a result of a weaker-than-anticipated October nonfarm payrolls report, prompting investors to buy more government debt.

Notable Yield Decreases

In New York morning trading, the 30-year yield BX:TMUBMUSD30Y was down by 12.5 basis points, reaching 4.695%. Additionally, the 10-year yield BX:TMUBMUSD10Y fell by 16.2 basis points, settling at around 4.506%. Both yields have declined by over 30 basis points this week.

Furthermore, the 10-year yield's drop on Friday is projected to be the most significant one-day decrease since March 17, shortly after the collapse of California's Silicon Valley Bank.