U.S. 10-Year Treasury Yield Falls to 4.62% on Weak July Jobs Report

According to market data, on August 5, U.S. 10-year Treasury yields fell 6 basis points to 4.62%, while 2-year yields declined 7 basis points to 4.187%. The decline followed weaker-than-expected July private employment data: ADP reported 44,000 jobs added versus consensus of 70,000, marking the lowest gain since January.

The Treasury Department's quarterly refunding announcement (QRA) signaled a potential shift in debt issuance policy, changing language from evaluating future "increases" in coupon and floating-rate debt offerings to assessing "changes," opening the door to potential reductions. Meanwhile, July's ISM Services PMI came in at 54.1, with employment subindexes sliding 3.8 points to 47.4, offsetting elevated price pressures at 70.3.