U.S. Treasury yields fall under pressure ahead of data release

⑴ During Tuesday's European trading session, government bond yields declined, with market focus highly concentrated on the upcoming release of January's labor market data. ⑵ This key data was originally scheduled for release on Friday but has now been postponed to Wednesday. Prior to this, the weekly ADP private sector employment data will also be published. ⑶ An asset management company noted in its report that these data may strengthen market expectations for interest rate cuts. The company stated: "In an environment where the resilience of the labor market is increasingly being questioned, any data that falls short of expectations could intensify market caution ahead of Wednesday's employment report and put pressure on government bond yields." ⑷ Specifically, data show that the 10-year government bond yield fell by 1.6 basis points to 4.181%. ⑸ The market is holding its breath, as the strength or weakness of the labor data will be a key catalyst in determining short-term interest rate expectations and the direction of asset prices.