Treasury Yields Tick Down

Published April 10, 2026

Treasury yields declined midweek ahead of the latest inflation data on consumer prices for February. Yields held steady at the end of the week as the jobs report showed few signs of labor market deterioration.

On Thursday, the Commerce Department announced that the personal consumption expenditure (PCE) index, which measures the cost of goods and services purchased by U.S. households, rose 0.4% in February, in line with economists’ expectations. Core PCE, which excludes food and energy, increased by 3% in February and the all-items headline inflation rose by 2.8%.

“The increase in the core metric, the best long-run predictor of overall inflation, is far more problematic for central bankers (who) are now six years into a journey well above the Fed’s 2% inflation target, whether the ceasefire in the Gulf holds or hostilities resume in the near term,” said principal and chief economist for RSM, Joseph Brusuelas.

The benchmark 10-year Treasury note yield opened the week of April 6 at 4.32% and traded as low as 4.23% on Wednesday. The 30-year Treasury bond opened the week at 4.92% and traded as low as 4.84% on Wednesday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment increased by 16,000 to 219,000 for the week ending April 4, higher than economists’ expectations of 210,000 claims. Continuing claims decreased by 38,000 to 1.79 million.

"The labor market is holding steady amid a slowdown which gives the Fed some time to wait and manage to their dual mandate," said chief economist at LPL Financial, Jeffrey Roach. "Given the macro picture, I do not buy into the narrative that the Fed will hike this year."

The 10-year Treasury note yield finished the week of 4/6 at 4.34% while the 30-year Treasury note yield finished the week at 4.92%.