(Bloomberg) -- The yield on the benchmark 10-year Treasury note dropped back below the psychologically important 3% mark on Thursday as fear of recession increasingly occupies traders’ minds more than inflation.
The rate fell as much as 9.3 basis points to 2.996%. While the market was at that level as recently as early June, the yield did in the interim climb to almost 3.50% on the back of inflation concerns and the likely policy tightening response of the Federal Reserve. It tested and failed to breach the 3% mark on June 23.
The retreat in yields got extra momentum Thursday after personal spending figures and a key gauge of inflation that the central bank looks at came in lower than most analysts had anticipated.
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