Westpac Banking Corporation: If non-farm payrolls support rate cut expectations, the yield on the 10-year US Treasury bond may fall to 3.8%
Westpac Banking Corporation stated that the sentiment towards US Treasuries is very optimistic, and the upward trend strengthened this week. With policy news and economic data releases, market expectations are that the Federal Reserve will initiate a faster and larger easing cycle within the year. "As the 10-year US Treasury yield is below 4%, non-farm payroll data may be a decisive factor in determining how long the current rally in US Treasuries will last," said Damien McColough, Director of Fixed Income Research at the bank's Sydney office. If the data supports the current expectation of a significant rate cut by the Federal Reserve, the 10-year US Treasury yield may move towards 3.8%
On August 2nd, according to CIBC, the sentiment towards US bonds is very optimistic, and the upward trend strengthened this week. With policy news and economic data releases, the market expects the Federal Reserve to start a faster and larger easing cycle within the year. "As the 10-year US Treasury yield is below 4%, non-farm payroll data may be a decisive factor in determining how long the current rally in US bonds will last," said Damien McColough, Director of Fixed Income Research at the bank's Sydney office. If the data supports the current expectation of a significant rate cut by the Federal Reserve, the 10-year US Treasury yield may move towards 3.8%