U.S. Treasury yields held steady as markets reopened after the Labor Day holiday and investors looked to key economic data slated for the week.
At 3:23 a.m. ET, the yield on the 10-year Treasury yield was last trading at 3.9054% after dipping by less than one basis point. The 2-year Treasury yield was last up by less than one basis point to 3.9291%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
Investors weighed the state of the economy and considered the outlook for interest rates as they looked to key labor market data due this week.
Job openings figures for July, ADP’s private payrolls data for August and the August jobs report, which includes nonfarm payrolls and the latest unemployment rate, are all due this week.
Investors will be watching the data closely for fresh signals about the economic outlook. Last month, the July jobs report raised fears about a recession and questions about whether the Federal Reserve should have already cut interest rates, sparking market volatility.
Recession concerns have eased since then, with the second-quarter gross domestic product last week being revised higher from the initial 2.8% reading to 3% growth.
Markets are firmly pricing in an interest rate cut from the Fed when it next meets later this month on Sept. 18. CME Group’s FedWatch Tool indicates that traders were pricing in an around 69% chance of a 25-basis-point cut, and a 31% probability of a 50-basis-point reduction.
On Tuesday, investors will also be looking out for the August ISM manufacturing PMI.