US 10Y TREASURY: testing 4.2%

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The US10Y Treasury yields continued to slide during the previous week, testing the level of 4,2%. Posted PCE figures for July of 0,2% and core PCE of 0,3% for the month, heated market expectation that the next feds rate cut will be in September. Still, some news headlines related to the dispute between the Fed Governor Lisa Cook and the US President, were not quite welcomed by the market, hence, 10Y yields modestly reverted on Friday, ending the week at 4,22%.
The week ahead will bring jobs data. The non-farm payrolls and JOLTs are due for a release, which might bring back some higher volatility. This will be the case if posted data are not in line with market expectations. In the opposite case, it could be expected that the market will continue to test the 4,2% current supporting level.

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