1. 10-year Treasury yield fluctuates between 4.10% and 4.20% since mid-September. 2. 32,000 job losses dropped yields briefly to 4.09%, highlighting labor market weakness. 3. Government shutdowns historically lower 10-year Treasury yields by 0.020 percentage points. 4. Investors expect Treasury yields to decline due to weak market conditions. 5. Foreign investors dominate Treasury markets, influencing future yield dynamics.
Weak labor signals and government shutdowns typically lead to lower yields, positively impacting equities. Historically, lower yields have supported bullish stock trends, like in 2020.
The article discusses Treasury yields and their imminent change, directly impacting SPY's valuation. Interest rate perceptions and yield dynamics strongly influence investor sentiment in equities.
With yields expected to dip due to imminent government shutdown, the impact will manifest soon. Immediate market reactions to changing Treasury yields can influence SPY quickly.