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The policy-sensitive 2-year Treasury yield slipped from its highest level since March Monday morning, as buyers for government debt re-emerged to kick off the week.
What’s happening
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The yield on the 2-year Treasury
BX:TMUBMUSD02Y
was 5.037%, down 1.7 basis points from 5.054% on Friday. Yields move in the opposite direction to prices. -
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
was 4.208%, down 3.1 basis points from 4.239% Friday afternoon. -
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
was 4.26%, down 3.3 basis points from 4.293% late Friday.
Last week, the two-year yield rose by 12 basis points, while the 10-year and 30-year declined by 1.2 basis points and 8.6 basis points, respectively, according to Dow Jones Markets Data.
What’s driving markets
Economists continued to weigh in on Federal Reserve Chairman Jerome Powell’s Jackson Hole speech from Friday, saying he set a high bar for additional interest-rate hikes even though he also said policy makers are prepared to hike if appropriate.
Read: Jackson Hole recap: Fed rate hikes likely on hold for ‘several meetings’
Buyers for U.S. government debt re-emerged on Monday, after the policy-sensitive 2-year rate ended Friday’s session at 5.054% or its highest level since March 8. Monday brings a $45 billion auction of 2-year notes and $46 billion sale of 5-year notes that will act as a test of demand by foreign and domestic buyers.
There’s no economic data set for release on Monday, the start of a busy week that includes the July PCE price index on Thursday and Friday’s nonfarm payrolls data for August.
