Treasury Sell-Off Eases Further After Jobs Report
The yield on the US 10-year Treasury note dropped 7 basis points to 5.175% on Friday, extending the retreat from this week’s peak above 5.34%, the highest level since 2002. The move lower followed a surprisingly weak US employment report, which reduced expectations that the Federal Reserve would need to raise interest rates at its October meeting. Nonfarm payrolls increased by only 29,000 in September, missing all estimates, while employment figures for the previous two months were revised lower. The unemployment rate also climbed to 4.2%, reinforcing signs of a cooling labour market and more cautious hiring amid elevated costs. Money markets subsequently reduced expectations for an October Fed hike, putting further downward pressure on Treasury yields. Falling oil prices added to the disinflationary backdrop, with Brent crude slipping below $100 a barrel and easing concerns over renewed energy-driven inflation.
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34%, the highest level since 2002. The move lower followed a surprisingly weak US employment report, which reduced expectations that the Federal Reserve would need to raise interest rates at its October meeting. Nonfarm payrolls increased by only 29,000 in September, missing all estimates, while employment figures for the previous two months were revised lower. 2%, reinforcing signs of a cooling labour market and more cautious hiring amid elevated costs.
Money markets subsequently reduced expectations for an October Fed hike, putting further downward pressure on Treasury yields. Falling oil prices added to the disinflationary backdrop, with Brent crude slipping below $100 a barrel and easing concerns over renewed energy-driven inflation.