The 10-year U.S. Treasury yield slid below a closely followed level on Tuesday after fresh job openings data hinted at a cooldown in what's been a tight labor market.
The yield on the benchmark 10-year Treasury was down by more than 10 basis points at 4.18%, below the key 4.2% level for the first time since early September. The 2-year Treasury yield was last lower by around 7 basis points at 4.587%.
Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.
Treasurys
JOLTs job openings figures for October came in below expectations at 8.7 million, sliding 617,000 to the lowest level since March 2021. That fell short of a 9.4 million estimate from Dow Jones.
Investors have been assessing the path ahead for Federal Reserve interest rate policy and are looking to economic data for hints about what the central bank could announce at the conclusion of its upcoming meeting next week. Central bankers have maintained that a softening in the labor market remains a key factor in attaining policy goals.
The Fed is widely expected to keep interest rates unchanged at its next meeting, and many investors are still hoping for guidance around when policymakers may start thinking about cutting rates. However, Fed Chairman Jerome Powell last week suggested any speculation about rate cuts and assumptions that monetary policy is restrictive enough were "premature."
As the Fed has entered its so-called blackout period, during which officials cannot speak publicly in the lead-up to and just after a policy meeting, investors will not gain any fresh insights from policymakers before the meeting.
Various economic data points are, however, expected beforehand and could provide hints about the state of the economy and whether higher interest rates are having their desired effect in cooling the economy.
Later in the week, ADP's private payrolls report, as well as nonfarm payrolls and unemployment data for November, are expected.