The yield on the 10-year US Treasury note hovered around 4.3% on Thursday, rebounding slightly from the previous session’s two-and-a-half-month low of 4.26%, as investors weighed fresh economic data against growing concerns over tariffs and potential government spending cuts.
US 10-year yield trims plunge
A second estimate confirmed that the US economy expanded at an annualized 2.3% in Q4 2024, matching initial projections.
At the same time, durable goods orders for January exceeded forecasts, climbing 3.1%, signaling resilience in manufacturing. However, signs of economic weakness persisted, as initial jobless claims surged to their highest level in two months, reinforcing worries about a slowdown—especially after disappointing PMI readings earlier in February.
Geopolitical tensions influence bond market
Adding to market jitters, President Trump announced a 25% tariff on European goods while reaffirming plans to implement similar levies on imports from Mexico and Canada, amplifying fears of dampened trade activity. Additionally, his renewed pledge to balance the federal budget during his term has heightened expectations of substantial cuts to public spending, contributing to recent volatility in Treasury yields.
