The yield on the US 10-year Treasury note held steady around 4.22% on Monday after last week’s heightened volatility, as traders awaited key economic data delayed by the partial government shutdown. Markets will see the January jobs report on Wednesday, alongside December retail sales data, with recent indicators pointing to a slowing labor market. The postponed January consumer price index reading is scheduled for Friday. Markets currently expect the Federal Reserve to keep interest rates unchanged in March, with potential cuts in June and possibly September. On Thursday, Treasury yields dropped sharply as weak US jobs data and selloffs in tech stocks, precious metals, and cryptocurrencies drove safe-haven demand for bonds. Sentiment improved on Friday after preliminary data showed the University of Michigan consumer sentiment index unexpectedly climbed to a six-month high.
