The yield on US Treasury bonds mostly fell, and the US dollar weakened, influenced by the prospect of a rate cut by the Federal Reserve.

With expectations for a rate cut by the Federal Reserve heating up, most US Treasury yields have slightly decreased, and the US dollar has fallen as well. Konstantinos Chrysikos of Kudotrade stated in a report, "A rate cut will narrow the yield differential with other major economies and weaken the attractiveness of the US dollar for arbitrage trading." He mentioned that the market is also preparing for Wednesday's ADP employment data and the ISM Services Purchasing Managers' Index data, with average expectations showing a decrease in hiring and business activity, which could further reinforce rate cut expectations. The 2-year US Treasury yield dropped by 1.6 basis points to 3.499%; the 10-year US Treasury yield fell by 0.7 basis points to 4.081%. However, according to Tradeweb data, the 30-year US Treasury yield slightly increased by 0.5 basis points to 4.746%. The DXY US dollar index dropped by 0.4% to 99.012.