US 10Y Fell Below 2% on Tuesday

The yield on the benchmark 10-year Treasury note fell below 2% on Tuesday as investors looked for safety following the release of much weaker-than-expected confidence data.

The yield traded at 1.98% as of 11:02 a.m. ET. The 2-year rate also slid to 1.71% while the 30-year bond yield declined to 2.52%.

The Conference Board’s consumer confidence index fell to 121.5 in June, reaching its lowest level since September 2017. Conference Board senior director Lynn Franco said escalating trade fears appear to have “shaken consumers’ confidence.”

“Those survey readings of higher consumer confidence were just a lot of hot air as it turns out,” said Chris Rupkey, chief financial economist at MUFG, in a note. “If the Fed had had this almost ten point drop in the confidence number last week it may well have tipped the scale and led them to cut interest rates.”

Federal Reserve Chairman Jerome Powell will speak at the Council on Foreign Relations. Powell’s remarks will come after the Fed said last week it will “act as appropriate” to maintain economic growth.

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.