U.S. Treasury yields fell on Friday as investors moved into risk-off assets following Thursday’s Wall Street selloff.
The 10-year yield fell more than 3 basis points to 4.077%, and the 2-year yield also fell to 3.556%. The 30-year bond yield fell 2 basis points to 4.682%.
One basis point equals 0.01%, and the yield is inversely proportional to the price.
The three major US stock indexes, russell 2000It was the worst single-day performance since October 10th. Investors are withdrawing from tech stocks as they become increasingly concerned about their valuation levels.
Investors are also keeping an eye on the state of the U.S. economy after President Donald Trump signed a funding bill late Wednesday to end the longest U.S. government shutdown. The bill passed the House by a vote of 222-209.
During the government shutdown, government agencies were unable to release key reports such as the consumer price index, producer price index, and nonfarm payrolls report, leaving investors blind to economic indicators.
White House press secretary Caroline Levitt said some economic data may not be released during the government shutdown.
“The Democratic shutdown has made it extremely difficult for economist investors and Federal Reserve policymakers to obtain critical government data,” Levitt said.
Investors are also keeping an eye on the Federal Reserve’s future interest rate decisions. Traders are now pricing in a more than 50% chance that the central bank will cut the benchmark overnight borrowing rate by a quarter of a percentage point at its December meeting, according to the CME FedWatch tool. This marks a notable decline from earlier this week.
