Treasury Yields Rise as Services PMI Surpasses Estimates

US Treasury yields have continued their upward trend following the announcement of a bond buyback by the US Department of the Treasury. The data revealed that business activity remains solid despite a slowdown in manufacturing, as indicated by the strong services PMI.

The US 2-year Treasury yield rose five basis points to 4.24%, while the 10-year benchmark note increased almost three basis points to 4.474%. Meanwhile, the 30-year bond yield reached 5.276%, up 2.5 bps, despite the Treasury's plan to increase purchases at the long end of the curve from $2 to $4 billion.

The strong services PMI, which beat estimates, offset the support provided by the Treasury buyback. The US Dollar Index (DXY) remained unchanged at 98.84, down 0.02%.

Looking ahead, key events include Treasury Secretary Bessent's announcement of Iranian sanctions on Monday, the US PCE report, and Fed Chair Warsh's speech at Jackson Hole.