The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
DOWNLOAD
View all Reports
Metrobank.com.ph Contact Us
Follow us on our platforms.

How may we help you?

TOP SEARCHES
  • Where to put my investments
  • Reports about the pandemic and economy
  • Metrobank
  • Webinars
  • Economy
TRENDING ARTICLES
  • Investing for Beginners: Following your PATH
  • On government debt thresholds: How much is too much?
  • Philippines Stock Market Outlook for 2022
  • No Relief from Deficit Spending Yet

Login

Access Exclusive Content
Login to Wealth Manager
Visit us at metrobank.com.ph Contact Us
Access Exclusive Content Login to Wealth Manager
Search
The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
Buildings in the Makati Central Business District
Economic Updates
Monthly Recap: BSP to outpace the Fed in rate cuts 
May 29, 2025 DOWNLOAD
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
May 8, 2025 DOWNLOAD
View all Reports
Rates & Bonds 4 MIN READ

US yields hit 4% for 1st time in 2 months; yield curve briefly inverts

October 8, 2024By Reuters
Related Articles
Gold steady as investors stand by for US inflation figures July 13, 2022 S&P 500, Nasdaq post record closing highs; Fed meeting, CPI ahead June 11, 2024 Oil rises on demand optimism as China borders reopen January 9, 2023

NEW YORK – The benchmark US Treasury 10-year yield topped 4% for the first time in more than two months on Monday, while a widely watched part of the yield curve briefly inverted, as markets reduced bets of another super-sized rate cut following Friday’s strong US jobs report.

Investors were also prepping for USD 119 billion in auctions of the US three-year and 10-year notes, as well as 30-year bonds. That has led to some concession, which means market participants have been selling Treasuries, pushing their prices lower and yields higher, and buying them back later after the auction.

In afternoon trading, the 10-year yield rose 3.9 basis points (bps) from late Friday to 4.019%, advancing for a fourth straight session after hitting its highest level since late July of 4.033%. It rose 13 bps on Friday, its biggest one-day rise since June 30, after news the US economy added 254,000 jobs in September, above the expectations of economists polled by Reuters. The unemployment rate surprisingly fell to 4.1% from 4.2%.

The US two-year yield, which is more sensitive to changes in monetary policy expectations, reached its highest since Aug. 19 at 4.0270% and was up 7.4 bps at 4.006%. It rose almost 22 bps on Friday, its biggest daily rise since April.

“At this point, we are still in a cutting cycle. From the market’s perspective, I still believe the Fed is going to deliver a couple more eases this year,” said Angelo Manolatos, macro strategist, at Wells Fargo. “What really ends up being the question is: how much are they cutting in 2025? There has been a rethink of the 25-bp easing from the market.”

The US rate futures market has priced in an 88% chance of a 25-bp cut next month, and 12% odds that the Fed will pause at according to LSE calculations. The market overall has also factored in 50-bp of easing for the remainder of the year.

Meanwhile, the bigger increase in yields on the two-year compared to that of the 10-year has briefly inverted the curve, flattening overall from a steepening scenario. The yield spread between the two-year and the 10-year hit minus 1.4 bps. It was last at positive 2.3 bps.

The flattening of the curve suggested that the market has reduced expectations of an aggressive rate-cutting cycle.

The Fed last month lowered the fed funds target rate to 4.75%-5.0% from 5.25%-5.5%, where it had been since the Fed stopped hiking rates in July 2023.

Gennadiy Goldberg, head of US rates strategy, at TD Securities in New York, said the selloff in Treasuries that brought key yields just above 4% could incentivize investors to add duration, once the market stabilized. Goldberg added that this week’s auctions could draw decent interest now that yields have backed up.

In other maturities, the 30-year bond yield rose 3.7 bps to 4.304%.

The main US economic release of the week comes on Thursday with the release of September’s Consumer Price Index. Inflation worries have given way to the strength of the labor market as a driver of Fed policy thinking.

“Inflation is back in the spotlight as the strength in the labor market and the economy are sparking some angst that the FOMC (Federal Open Market Committee) might have subtly declared victory too soon,” wrote Action Economics in a blog. “A benign report is generally expected for September, so hotter data would weigh further on the markets.”

(Reporting by Alden Bentley and Gertrude Chavez-Dreyfuss in New York; Additonal reporting by Samuel Indyk and Harry Robertson in London; Editing by Alun John, Dhara Ranasinghe, and Barbara Lewis)

 

This article originally appeared on reuters.com

Read More Articles About:
Worldwide News Philippine News Rates & Bonds Equities Economy Investment Tips Fine Living

You are leaving Metrobank Wealth Insights

Please be aware that the external site policies may differ from our website Terms And Conditions and Privacy Policy. The next site will be opened in a new browser window or tab.

Cancel Proceed
Get in Touch

For inquiries, please call our Metrobank Contact Center at (02) 88-700-700 (domestic toll-free 1-800-1888-5775) or send an e-mail to customercare@metrobank.com.ph

Metrobank is regulated by the Bangko Sentral ng Pilipinas
Website: https://www.bsp.gov.ph

Quick Links
The Gist Webinars Wealth Manager Explainers
Markets
Currencies Rates & Bonds Equities Economy
Wealth
Investment Tips Fine Living Retirement
Portfolio Picks
Bonds Stocks
Others
Contact Us Privacy Statement Terms of Use
© 2025 Metrobank. All rights reserved.

Read this content. Log in or sign up.

​If you are an investor with us, log in first to your Metrobank Wealth Manager account. ​

If you are not yet a client, we can help you by clicking the SIGN UP button. ​

Login Sign Up