Treasury Yields Resume Slide on Latest Sign Labor Market Cooling

Treasury yields resumed their downward slide — with the benchmark 10-year note’s falling to the lowest level since Sept. 1 — after the latest sign of labor-market cooling bolstered bets that a Federal Reserve shift to policy easing isn’t far off.

Long-term yields led the decline, falling as much as 11 basis points. The 10-year’s reached 4.16%. Two-year yields, more closely tied to the outlook for Fed policy, fell as much as 8 basis points after reaching the lowest level since June last week.

“The labor market is unmistakably cooling after running red hot for the last few years,” Bill Adams, chief economist at Comerica Bank, said in a note. “That sent yields lower as markets price in increased confidence that the Fed will pivot to rate cuts in 2024.”

The Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey showed that US job openings slumped in October to the lowest level since March 2021. With Fed officials in a self-imposed quiet period of next week’s policy decision and the critical November employment report ahead Friday, labor-market data are top-of-mind for traders.

Two Year Treasury Yield Resumes Trend Downward