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Treasury yields fall with oil prices, 10Y & 30Y hit May lows

Created at 2 Jun · 12:06 PM1 source↑ Market-relevant
IN SHORT

Treasury yields declined by 2bp-3bp, tracking oil prices and following steeper drops in European bond markets. The 10-year and 30-year Treasury yields reached their lowest points since mid-May, with the 30-year falling below its 50-day average for the first time since March.

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Key Numbers

2bp-3bpTreasury yield decline
10-yearTreasury yield
30-yearTreasury yield
50-dayaverage level

Who's Involved

US Treasury
yields declined

↳ Why This Matters

The decline in longer-term Treasury yields suggests a potential shift in market sentiment towards safer assets or expectations of future interest rate cuts, while the correlation with oil prices indicates broader macroeconomic influences at play.

Key facts

  • Treasury yields fell by 2bp-3bp.
  • Oil prices moved lower alongside Treasury yields.
  • 10-year and 30-year Treasury yields reached their lowest levels since mid-May.
  • The 30-year Treasury yield fell below its 50-day average for the first time since March.

Treasury yields experienced a decline of 2 to 3 basis points, moving in tandem with oil prices and following more significant yield decreases observed in European bond markets. Both the 10-year and 30-year Treasury yields hit their lowest points since mid-May. Notably, the 30-year yield dropped below its 50-day moving average, a level it had not breached since March. Coupon auctions are set to resume with the 3-year auction scheduled for June 9.

Frequently asked questions

Treasury yields declined by 2 to 3 basis points.

The 10-year and 30-year Treasury yields reached their lowest levels since mid-May.

The 30-year yield falling below its 50-day average for the first time since March indicates a notable shift in its recent trading trend.

What Happens Next

013-year Treasury coupon auction on June 9.

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Cadence
CME Headlines
  • 10-Year Treasury Note yields rose on Middle East supply risks.
    8 Jul · 8:03 PM
  • 10-Year Treasury Note yields rose on Middle East supply risks.
    8 Jul · 8:03 PM
  • Japanese Yen futures fell near multi-decade lows.
    8 Jul · 7:57 PM

How It Developed

2 Jun · 11:50 AM
Treasury yields decreased by 2-3 basis points, mirroring oil price movements and lagging behind European bond market declines.
@beth_stanton via PiQSuite

Sources

T1
#TreasuriesToday: Yields lower with oil prices by 2bp-3bp, trailing steeper yield declines in most European bond markets. 10Y & 30Y touched lowest levels since mid-May, with 30Y below 50-day average level for first time since March. Coupon auctions resume with 3Y on June 9.@beth_stanton via PiQSuite

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