Treasury yields decline after U.S. ousts Maduro in Venezuela
U.S. Treasury yields moved lower on Monday, with the benchmark 10-year yield falling by more than 3 basis points to 4.155%. The decline followed a significant geopolitical development over the weekend—the U.S. capture of Venezuelan President Nicolas Maduro—alongside the release of weaker-than-expected domestic economic data.
Market analysts noted that the Venezuela event introduced a new layer of global uncertainty, prompting a partial flight to the relative safety of U.S. government bonds. This dynamic was reinforced by the December reading of the ISM manufacturing index, which came in at 47.9%, indicating a contraction in sector activity and falling short of economist expectations.
Focus Shifts to Labor Market Data
With these events setting the tone, investor attention is now firmly fixed on the upcoming December jobs report, due for release on Friday. The data is expected to provide the next major signal regarding the health of the U.S. economy and the potential path for Federal Reserve monetary policy, which remains a primary driver for fixed-income markets.
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