06.08.202517:25:13UTC+00US 10-Year Yield Rebounds after Fresh Auction

The yield on the 10-year US Treasury note increased to 4.25% on Wednesday due to subdued demand for the newly issued 10-year note, highlighting ongoing concerns about long-term inflation risks. Nevertheless, the yield remains close to the three-month low of 4.19% recorded in the previous session. Data from the ISM indicated that service sector activity nearly came to a halt in July, contrary to predictions of a more significant expansion, while the employment index fell for the fourth time in five months. This came after revisions by the Bureau of Labor Statistics saw 258,000 nonfarm payroll jobs removed from overall figures over the past two months, which underscored July's disappointing payroll numbers. The revised statistics suggest that tariff threats and ambiguous economic policies have exerted a more pronounced effect on the US labor market in recent months, challenging the earlier perception of its strength. Additionally, yields were impacted by the Treasury's decision to raise the volume of buybacks on notes, bonds, and Treasury Inflation-Protected Securities (TIPS).