U.S. Treasury yields were lower on Wednesday as investors assessed the outlook for the economy after the latest economic data releases.
At 4:06 a.m. ET, the yield on the 10-year Treasury was down by over three basis points to 3.8082%. The 2-year Treasury pulled back by over five basis points to 3.8363%.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
Treasurys
Investors digested the latest economic data and considered what it could mean for the state of the U.S. economy.
Manufacturing production insights published Tuesday indicated weakness in the sector, which fueled concerns about an economic slowdown in the U.S. The data comes just weeks after recession fears and questions around whether the Federal Reserve should have already started cutting interest rates enveloped markets.
Those concerns — which were sparked by a July jobs report that was weaker than expected — had, however, been eased somewhat since then through fresh economic data releases, including a gross domestic product print that reflected 3% growth in the second quarter.
The August jobs report is slated for Friday this week, and investors will be parsing through it for fresh clues about the state of the labor market. Other labor market data due this week includes JOLTs job openings figures on Wednesday and ADP’s employment change report.
The Fed is next set to meet later this month, when it will also announce its latest interest rate decision. Markets are widely pricing in a rate cut from the central bank then, but traders are still divided on how big the cut could be.
On Wednesday, investors will be watching out for the latest factory orders and trade figures.