Weak Jobs Data Keeps Yields Elevated, Nasdaq Futures Dip

U.S. Treasury yields remained pinned near multiyear highs on Monday as investors braced for fresh economic data and the release of Federal Reserve minutes later this week. The benchmark 10-year note sat at 5.273 percent after slipping less than one basis point, while the 30-year bond eased marginally to 5.626 percent. The figures follow a sharp sell-off in recent weeks that has driven borrowing costs higher across the curve, raising the expense of mortgages, car loans and corporate debt that ultimately lands on households and businesses.

A softer-than-expected jobs report last Friday offered brief relief, prompting traders to price in an 82 percent chance that the Fed will leave rates unchanged at its next meeting. Yet analysts at Deutsche Bank noted that the unsettled bond market will make incoming figures and central-bank communications especially consequential. The Institute for Supply Management services report due Monday and the September Fed minutes scheduled for Wednesday are expected to clarify how policymakers view the neutral rate and the ongoing tightening cycle.

Across the Atlantic, the euro fell to its weakest level against the dollar in 17 months amid political uncertainty in Spain and France. The single currency dropped 0.6 percent to lows last seen in May 2025, reflecting simultaneous pressures from rising inflation, elevated interest rates and mounting government borrowing costs inside the euro zone. Spanish assets had been viewed favorably earlier in the year because of stronger growth and relative fiscal discipline, yet even those holdings came under pressure as the broader sell-off intensified.

France has become the clearest illustration of sovereign debt strains. Economists at Barclays warned that the government's draft 2027 budget, which aims to cut the public deficit from 5.4 percent of GDP to 5 percent, is unlikely to meet targets even if approved. Higher debt-service costs are squeezing fiscal space at a time when public services already face strain from years of elevated rates. The combination of tight monetary policy and political friction has left euro-zone economies confronting higher financing costs without clear relief on the horizon.

The parallel developments underscore how policy choices at central banks and finance ministries continue to shape everyday borrowing costs. With yields stuck near recent peaks and the euro under pressure, markets are signaling that relief for workers and small businesses remains distant until clearer signals emerge from Washington and European capitals.