Daily Market Color May 2, 202210-Year Treasury Yield Hits 3% for the First Time in 4 Years US financial markets had another volatile day today, highlighted by the 10yr UST briefly crossing the 3% psychological threshold for the first time since 2018. This week is important as one we’ve had in rates markets in quite some time, featuring much-anticipated comments from the Fed following a nearly guaranteed 50bps hike on Wednesday and monthly payroll figures on Friday. Major equity indices seesawed between gains and losses before ultimately finishing higher – the tech-heavy Nasdaq led winners and was able to recapture a small portion of last month’s abysmal performance (+1.6% on the day). ISM manufacturing index falls to 55.4 in April. The reading came in below the 57.6 forecast, with activity declining to the slowest pace in nearly two years. Out of the six biggest manufacturing industries, the supply chain industry was the only one that did not show strong growth, as COVID-19 restrictions in Shanghai continue to put pressure on manufacturers. Over 25 million people continue to remain in lockdown in Shanghai, leading economists to believe the supply chain issues will likely spill into the coming months. Day ahead. Tomorrow, FOMC will begin their two-day meeting, with the FOMC announcement scheduled for Wednesday afternoon. In addition, March job openings and factory orders data will be released.