Yield On 10-Year U.S. Treasury Falls To Lowest Level Since February

The 10-year U.S. Treasury yield has fallen to 1.28%, its lowest point since February, ahead of the release of America’s weekly jobless claims data.

The yield on the benchmark 10-year Treasury note fell less than a basis point to 1.285%. The yield on the 30-year Treasury bond dipped to 1.899%. Yields move inversely to prices.

The U.S. Labor Department is due to release the number of weekly jobless claims for the week ended July 3 at 8:30 a.m. Eastern time today (July 8).

Economists expect to see 350,000 first-time applicants for unemployment benefits for the week ended July 3, according to a survey conducted by Dow Jones Newswires.

The drop in the 10-year U.S. Treasury yield comes a day after the Federal Reserve released the minutes from its latest meeting held on June 15-16.

Some members of the U.S. central bank indicated that the economic recovery was proceeding faster than expected and was being accompanied by an outsized rise in inflation, both making the case for the Fed to ease its current stimulus measures.

However, the prevailing mindset was that there should be no rush and markets must be well prepared for any shifts in Federal Reserve policy. Auctions are being held today (July 8) for $40 billion of four-week bills and $40 billion of eight-week bills.