The yield on the US 10-year Treasury note fell to around 3.95% on Friday, its lowest level since April, as renewed concerns over credit market risks drove demand for safe-haven assets. Shares of Zions and Western Alliance plunged more than 10% after both banks disclosed bad loans with two counterparties, amplifying worries following recent bankruptcies of auto parts maker First Brands and subprime lender Tricolor. Mounting US-China trade tensions, the prolonged US government shutdown, and expectations of further Federal Reserve rate cuts also weighed on yields. Fed Governor Christopher Waller said Thursday he supports another rate cut this month amid rising labor market risks, while Fed Governor Stephen Miran called for more aggressive easing. The Fed’s Beige Book further signaled economic strain, citing increased layoffs and weaker spending among middle- and lower-income households.
