The yield on the US 10-year Treasury note eased to around 4.47% on Monday, giving back some of last week’s gains as investors cautiously awaited the minutes of the Federal Reserve’s June policy meeting for further clues on the interest rate outlook. Data released last week showed US nonfarm payrolls increased by just 57,000 in June, the smallest gain in four months and well below forecasts of 110,000, prompting traders to reduce bets on a September rate hike. Meanwhile, the unemployment rate unexpectedly edged down to 4.2%, largely due to a drop in the labor force participation rate to its lowest level since 2021. Oil prices also moved lower as recovering energy flows through the Strait of Hormuz and the prospect of higher OPEC+ output fueled concerns about a potential supply glut. That has helped ease inflationary pressures that had previously reinforced expectations of further rate hikes.

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