U.S. Treasury yields fell sharply on Thursday, with the 10-year yield dropping below 4% following a weaker-than-expected Philadelphia Fed survey showing deteriorating regional economic conditions. The 10-year Treasury yield declined over 7 basis points to 3.98%, while the 2-year yield dropped to 3.42% and the 30-year fell to 4.59%, marking their lowest levels in months. 

The decline came as stocks tumbled, led by bank shares, amid growing concern over bad loans, trade tensions, and the ongoing U.S. government shutdown. With the shutdown delaying key economic reports, investors are turning to Fed speeches for clues ahead of the October 28–29 FOMC meeting, where futures markets now overwhelmingly price in a 25-basis-point rate cut.

Federal Reserve officials offered conflicting views on how quickly to cut interest rates given a weakening labor market and geopolitical uncertainty. 

Finsum: Now could be the time to jump on treasuries as yields slump and prices are driven up on the uncertainty.