02.09.202504:11:23UTC+00US 10-Year Yield Climbs Ahead of Jobs Data

The yield on the 10-year US Treasury note increased to approximately 4.25% on Tuesday, marking a rise for the second consecutive session. This movement comes as investors returned from the holiday weekend and set their sights on pivotal labor market data expected later this week, which could influence the Federal Reserve's policy direction. Key attention is directed towards the August payrolls report scheduled for Friday, along with data on unemployment, job openings, and private sector hiring. Recently, Treasury yields have faced downward pressure as the market has anticipated potential Federal Reserve rate cuts despite ongoing inflation concerns. Traders are currently estimating almost a 90% probability of a 25 basis point reduction later this month. On Friday, San Francisco Fed President Mary Daly indicated that the central bank is ready to lower borrowing costs due to labor market risks, while also suggesting that tariff-driven inflation might be temporary. Additionally, concerns about Federal Reserve independence persist amidst President Donald Trump's attempts to dismiss Fed Governor Lisa Cook.