09.02.202602:00:33UTC+00US 10-Year Yield Steadies Ahead of Key Data

The yield on the U.S. 10-year Treasury note remained stable at approximately 4.22% on Monday, following a period of increased volatility last week. This comes as traders brace for crucial economic data releases postponed due to a partial government shutdown. Key figures to watch include the January jobs report and December retail sales data, both set for release on Wednesday, which recent indicators suggest may reflect a cooling in the labor market. The January consumer price index, postponed, will be released on Friday. Currently, market consensus anticipates that the Federal Reserve will maintain interest rates at their current levels in March, with potential reductions being considered for June and possibly September. On Thursday, Treasury yields saw a substantial decline largely attributed to weak U.S. employment data, coupled with selloffs in technology stocks, precious metals, and cryptocurrencies, all of which spurred increased demand for the safety of bonds. However, sentiment saw improvement on Friday, buoyed by preliminary data showing the University of Michigan consumer sentiment index unexpectedly rose to its highest level in six months.