Treasury yields fall for a second day as investors weigh central bank policy

Treasury yields fell across the board for a second day Tuesday as traders weigh actions from central banks going forward. The benchmark 10-year Treasury was down 3 basis points to 3.621%, after having surpassed the 4% mark last week. The yield on the policy-sensitive 2-year Treasury was flat at 4.099%. Yields and prices move in opposite directions and one basis point equals 0.01%. The moves appeared to be helping the stock market, as futures traded sharply higher Tuesday. Stocks also rallied Monday. There were about 1.1 million fewer job openings than expected in August, the Bureau of Labor Statistics reported Tuesday, providing a potential early sign that the massive U.S. labor gap is beginning to close. Available positions totaled 10.1 million for the month, less than the 11.1 million FactSet estimate, according to the Job Openings and Labor Turnover Survey. Markets also continued to absorb the unexpected decline of the U.S. Purchasing Managers’ Index data for the manufacturing sector, which measures factory activity. That comes as the Federal Reserve maintains a hawkish tone about interest rates hikes, with speakers from the central bank emphasizing that lowering persistent inflation is a top priority for them. Various Fed speakers are due to make remarks on Tuesday, which traders will pay close attention to in light of growing fears of a recession brought on by rate hikes being implemented too quickly.