Ten-year Treasury yields fall as markets process Fed rate hike

Ten-year Treasury yields fall as markets process Fed rate hike

The benchmark 10-year Treasury yield fell Friday as markets adjusted to the Federal Reserve’s rate hike and turned their attention to flash PMI (Purchasing Managers’ Index) data for September to be released later in the day.

The 10-year Treasury bill last traded at 3.6946%, down 1 basis point from 4:12 am ET. It had hit an 11-year high on Thursday, rising above 3.71% after gaining nearly 20 basis points.

The policy-sensitive 2-year Treasury continued to hover around 4.1% after rising following the Federal Reserve’s rate hike. By Thursday, it had risen to 4.163% – a level not seen since October 2007.

Yields and prices move in opposite directions. One basis point corresponds to 0.01%.

September flash PMI data is expected to be released on Friday, providing markets with preliminary insight into the economic condition of the manufacturing and services sectors for the month. PMI data is used as an important indicator of inflation and recession concerns because it shows whether industries are growing or shrinking, as well as supply and demand.
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