Last Updated:
First Published:
The benchmark 10-year Treasury yield fell below 4% to a four-month low as U.S. government debt rallied on Friday, despite an unexpectedly hot producer-price index report for January.
Ordinarily, yields should be spiking after a hot PPI print because of the prospect of stubborn inflation, but this wasn’t the case on Friday. Instead, the $30 trillion bond market was moving on something else: Worries about the destructive impact of artificial intelligence on the U.S. economy.
The 10-year yield
BX:TMUBMUSD10Y finished Friday’s session at 3.96%, while the rate on the 30-year bond BX:TMUBMUSD30Y slipped to 4.63% — which were respectively the lowest 3 p.m. Eastern time levels since Oct. 22 and Oct. 29. For all of February, each yield also had its largest monthly decline of the past year. Meanwhile, all three major stock-market indexes ended lower — led by an almost 1.1% drop, or 521.28-point decline, in the Dow Jones Industrial Average DJIA.