Treasury Yields Resume Their Rise
The yield on the US 10-year Treasury note resumed its rise to 5.52% on Friday after falling as much as 8bps earlier in the session, as the weaker-than-expected jobs report offered only temporary relief to the bond market. Nonfarm payrolls increased by just 29K last month, well below expectations for a 90K gain, while employment figures for the previous two months were also revised lower. Fed rate expectations eased following the data, with markets no longer pricing in a rate hike this month, although traders still see a high likelihood of an increase at the Fed’s December meeting. Meanwhile, a decline in oil prices provided some relief on the inflation front, although the conflict in the Middle East remains unresolved. The benchmark 10-year yield climbed above 5.34% earlier this week, its highest level since 2002, amid expectations of further Fed tightening, the lack of a resolution to the Middle East conflict, concerns over the US fiscal and debt outlook, and resilient economic data.
52% on Friday after falling as much as 8bps earlier in the session, as the weaker-than-expected jobs report offered only temporary relief to the bond market. Nonfarm payrolls increased by just 29K last month, well below expectations for a 90K gain, while employment figures for the previous two months were also revised lower. Fed rate expectations eased following the data, with markets no longer pricing in a rate hike this month, although traders still see a high likelihood of an increase at the Fed’s December meeting. Meanwhile, a decline in oil prices provided some relief on the inflation front, although the conflict in the Middle East remains unresolved.
34% earlier this week, its highest level since 2002, amid expectations of further Fed tightening, the lack of a resolution to the Middle East conflict, concerns over the US fiscal and debt outlook, and resilient economic data.