The yield on the US 10-year Treasury note continued its recent decline, hovering around 3.73% on Wednesday, as escalating tensions in the Middle East prompted a significant shift towards safer assets. In a dramatic development, Iran launched a series of missiles toward Israel in retaliation for Israel's actions against Iran-backed Hezbollah in Lebanon. Investors are now closely monitoring the potential consequences of Israel's response, with fears growing that this could spiral into a large-scale regional conflict.
Adding to market dynamics, investors also tuned into the vice presidential debate between Democrat Tim Walz and Rublican JD Vance, looking for insights on potential policy and economic implications. On the economic front, better-than-expected job openings data provided some relief regarding the labor market, though recent manufacturing data indicated a lasting contraction.
Eyes will be on upcoming labor market rorts, including ADP’s Employment Survey on Wednesday and the Stember jobs rort on Friday. The US 10-Year Note Bond Yield was rorted at 3.77% on Wednesday, October 2, according to over-the-counter interbank yield quotes.
Analysts project that this yield may trade lower, with expectations set at 3.68% by the end of the current quarter, and further anticipate it could decline to 3.47% in a year’s time, based on global macro models and expert insights.