U.S. Treasury yields continued to fall during the European afternoon session as investors anticipated the release of significant economic data, including the ADP and JOLTS labor market reports. The market is closely monitoring these releases for their potential impact on the Federal Reserve's policy decisions. According to Tradeweb, the 2-year Treasury yield decreased by 1.4 basis points to 3.458%, the 10-year yield fell by 3.7 basis points to 4.141%, and the 30-year yield dropped by 4.2 basis points to 4.823%.
Market participants are adopting a cautious approach, with the money market currently pricing in two rate cuts by the Federal Reserve this year, as reported by LSEG. The upcoming ISM services PMI data is also expected to influence market expectations regarding the Fed's policy direction.
U.S. Treasury Yields Decline as Markets Await Key Economic Data
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