Daily US Government Bonds 10-Year Yield
Treasury yields reversed Thursday’s declines as markets reassessed the inflation-labor narrative. The 10-year yield climbed 6.7 basis points to 4.078%, while the 2-year rose 4.1 bps to 3.57%, and the 30-year yield reached 4.696%. The broad-based rise suggests investors are still adjusting for inflation persistence even as labor indicators weaken, creating tension for policymakers balancing dual mandates.
Cross-Currency Moves Reflect Central Bank Divergence
The euro edged lower to $1.1725 after the ECB held rates at 2% and signaled a more neutral policy stance, with markets reducing odds of another cut this cycle. The dollar gained 0.4% against the yen to 147.76 following a U.S.-Japan statement opposing disorderly FX moves. Sterling slipped 0.2% to $1.3553 on news of stagnant UK GDP in July, further weakening near-term sentiment.
