US 10-Year Treasury Yield Falls to 5-Month Low

2025-09-11 12:51 By Andre Joaquim 1 min. read

The yield on the 10-year US Treasury note slumped to the 4.0% mark on Thursday, the lowest in five months, as the lack of upside surprises in the latest CPI data drove more evidence of a weaker labor market to dominate investors' forefront.

Initial jobless claims rose to their highest in nearly four years in the first week of September, aligning with the pessimistic data from the latest jobs report and payroll revision, and consolidating the shift following a period of labor-market resilience to higher interest rates.

Rate futures continued to show a broad consensus of 75bps in rate cuts this year, equivalent to one rate cut per remaining FOMC decision, with the first set for next week.

Still, the headline inflation rate picked up as expected during August, with the headline rate increasing to 2.9%.

Lingering inflation expectations since the adoption of aggressive tariffs this year drove the spread between the yield on the 30-year bond and the 10-year note to a four-year high.



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