datoid

The 10-year Treasury yield fell to 5.05% on August 31, 1998—a dramatic 4.3 standard deviation drop below its 60-day average of 5.43%. This represents a sustained decline from 5.52% on July 29th. The timing coincides with record-low unemployment at 4.30% and rising inflation (CPI up 1.8% over 3 months), creating an unusual economic backdrop where bond yields are falling despite typical inflationary pressures. This magnitude of deviation suggests significant market stress or major policy expectations shifted investor behavior in ways the recent averages couldn't capture.