Occasionally markets give a clear signal when a turning point has been reached. The July employment report provided one of those moments for the bond market. The report included downward revisions that showed that job growth was significantly weaker than previously believed over the past few months. It suggests slower economic growth ahead and increases the likelihood that the Federal Reserve will cut interest rates soon. Treasury yields dropped after the news was released, with the benchmark 10-year yield plummeting 14 basis points to 4.23%. At the current yields, the market is discounting the likelihood of the ... (full story)