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Bond yields fell Friday, following the biggest one-month slide in long-term yields in more than four years.
What’s happening
-
The yield on the 2-year Treasury
BX:TMUBMUSD02Y
was 4.66%, down 4.2 basis points. Yields move in the opposite direction to prices. -
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
was 4.32%, down 1.7 basis points. -
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
was 4.49%, down 0.2 basis points.
What’s driving markets
In November, both the 10- and the 30-year yield had the steepest slide since Aug. 2019 — a 53 basis-point decline for the 10 year, and a 51 basis-point fall for the 30 year.
The surge in bonds, as well as the rally in the stock market, meant the best monthly performance for the standard 60/40 model of equities and bonds since Nov. 2020, when Pfizer first announced positive coronavirus vaccine news.
Whether bonds continue to rally will be determined in large part by monetary policy expectations.
Federal Reserve Chair Jerome Powell will be at Spelman College in Atlanta, where at 11 a.m. Eastern he will have the chance to make opening remarks and then participate in a fireside chat with the school’s president.
Before the Powell speech, the key Institute for Supply Management’s manufacturing report is due, as automakers release their monthly sales statistics throughout the day.
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