US 10-year yield at five-month low as tepid labor market data weighs

The US treasuries edged higher, extending the recent upward trend as weak labor market data weighed on sentiments despite a slight firming in consumer price inflation. The yield on the benchmark ten-year note, which moves opposite of its price, fell 2.1 basis points to a five-month closing low of 4.01%. The US consumer price index saw seasonally adjusted 0.4% rise for August, marking the biggest gain since January. Annual inflation came at 2.9%- also highest since January. However, in another critical data, the US Labor Department reported a surprise increase in weekly unemployment compensation filings to a seasonally adjusted 263,000 for the week ended 6th September, up 27,000 from the prior period’s revised figure. This level marked the highest in nearly four years. This kept a September rate cut pretty much on cards and pulled yields lower.