'10-year yield holds steady near 11-week low as haven buying, growth fears wane'

 Treasury yields were little changed Wednesday morning as calmer conditions prevailed across markets and dimmed demand for the safety of government debt.

What's happening

-- The yield on the 2-year Treasury BX:TMUBMUSD02Y rose 1.2 basis points to 4.109%, from 4.097% on Tuesday. Yields move in the opposite direction of prices.

-- The yield on the 10-year Treasury BX:TMUBMUSD10Y was little changed at 4.293% versus 4.297% on Tuesday. Tuesday's closing level was the lowest since Dec. 11.

-- The yield on the 30-year Treasury BX:TMUBMUSD30Y was down less than 1 basis point to 4.547%, from 4.555% on Tuesday.

What's driving markets

Treasury yields were mixed Wednesday morning following sharp declines seen in recent sessions. The benchmark 10-year Treasury yield fell five days in a row as of Tuesday, shedding a total of 24.5 basis points to reach its lowest closing level in about 11 weeks, after data pointed to a cooling U.S. economy.

"Market participants are ignoring bad weather, worse fires, and the lag from the Fed waiting too long to cut financing costs, and instead are looking at deportations, tariffs, cut programs, and fewer government employees, to conclude what some economists have long been pointing to - without federal spending, the economy's direction is down," said Steven Blitz, chief U.S. economist of GlobalData TS Lombard.

Calmer market conditions prevailed Wednesday morning. However, yields may face upward pressure from a decision by the U.S. House of Representatives to pass a budget resolution late Tuesday that calls for trillions of dollars in tax and spending cuts. 

https://www.morningstar.com/news/marketwatch/20250226224/10-year-yield-holds-steady-near-11-week-low-as-haven-buying-growth-fears-wane