The US 10-year Treasury yield is on a downward trajectory following a tepid show on the economic readings, led by the July nonfarm payroll report and sustained worries on tariffs implemented by President Donald Trump. The US 10-year Treasury yield fell to a five-week low, approaching 4.22% mark and shedding more than 10 basis points. The US nonfarm payrolls increased 73K in July. While this was more than the 14K that were added in June, market was stunned by the sharp downward revision for previous month’s numbers, according to data released by the US Bureau of Labor Statistics on Friday. It showed that job creation in the US was weaker than previously estimated. June's headline number was revised down by 133K and May's was lowered to 19K from 144K.
In other economic data, the ISM said its manufacturing PMI edged down to 48.0 in July after inching up to 49.0 in June with a reading below 50 indicating contraction. Following this, the manufacturing PMI fell to its lowest level since hitting 46.9 in October 2024. Revised data released by the University of Michigan on Friday showed consumer sentiment in the US improved marginally less than previously estimated in the month of July. The University of Michigan said its consumer sentiment index for July was downwardly revised to 61.7 from a preliminary reading of 61.8.