US Treasury Yields Fall as 10-Year Hits 4.464% After Holiday

US Treasury bonds showed strength on July 6, with the 10-year Treasury yield declining 2.20 basis points to 4.464% as of 9:21 AM Eastern Time, according to Yonhap Infomax's overseas interest rate intraday screen. The rebound followed a four-day consecutive rise in yields before the Independence Day holiday. The Treasury market is experiencing a partial reversal after the extended weekend, with weaker-than-expected June non-farm payroll data continuing to influence investor sentiment.

Treasury Yields Decline Across Maturities on July 6

As of 9:21 AM Eastern Time on July 6, the 10-year Treasury yield stood at 4.464%, down 2.20 basis points from the previous trading day's 2 PM reference rate in the New York bond market. The 2-year Treasury yield, which is sensitive to monetary policy, recorded 4.118%, falling 2.10 basis points during the same period. The 30-year Treasury yield formed at 4.978%, down 0.90 basis points from the previous session. The spread between 10-year and 2-year yields remained nearly unchanged at 34.6 basis points compared to the previous day's 34.7 basis points. Treasury yields and prices move in opposite directions.

Market Rebounds After Four-Day Pre-Holiday Rise

The US Treasury market was closed on July 3 for the Independence Day holiday and closed early at 2 PM on July 2 ahead of the holiday. Before the holiday, US Treasury yields rose for four consecutive trading days. The 10-year yield, which closed at 4.372% on June 26, formed its closing price at 4.487% on July 2. The decline in Treasury yields on July 6 is interpreted as a rebound following the four-day upward trend.

June Employment Data Influences Trading Sentiment

The US June non-farm payroll data released on July 2 showed mild growth, significantly missing expectations, and continues to affect investment sentiment. The weak employment figures also slightly weakened bets on interest rate hikes within the year.

FOMC Minutes Release Scheduled This Week

The June Federal Open Market Committee (FOMC) minutes are scheduled to be released this week. As this was the first meeting chaired by newly appointed Federal Reserve Chairman Kevin Warsh, the market is expected to explore the meeting's atmosphere through the minutes.

FAQ

What did US Treasury yields do on July 6? US Treasury yields declined across maturities on July 6, with the 10-year yield falling 2.20 basis points to 4.464%, the 2-year yield dropping 2.10 basis points to 4.118%, and the 30-year yield decreasing 0.90 basis points to 4.978% as of 9:21 AM Eastern Time.

Why did Treasury yields fall after the Independence Day holiday? Treasury yields fell as the market experienced a rebound after a four-day consecutive rise in yields before the Independence Day holiday, with weaker-than-expected June non-farm payroll data continuing to influence investor sentiment and slightly weakening bets on interest rate hikes within the year.