NEW YORK- Longer-dated US Treasury yields fell on Monday, extending declines after the latest reading on the manufacturing sector, as a deadline for tariffs to be enacted by US President Donald Trump draws closer.
Yields extended slight declines, with the benchmark 10-year US Treasury note hitting 4.168 percent, its lowest since December 9, after the Institute for Supply Management (ISM) said its manufacturing PMI slipped to 50.3 last month from 50.9 in January, which had marked the first expansion since October 2022. A reading above 50 signifies expansion.
In addition, its measure of prices paid by manufacturers for inputs surged to 62.4, the highest reading since June 2022, and it was taking longer for materials to be delivered, suggesting tariffs on imports could dent production.
“The fact that the ISM Manufacturing index is above 50 is masking a lot of reasons for concern – it increased because supplier deliveries are slowing and prices are rising – that’s not a sign of strength,” said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin.
