US 10-Year Yield Rises on Strong Jobs Data
The yield on the US 10-year Treasury note rose to around 4.88% on Monday, extending gains for a second consecutive session as stronger-than-expected employment figures reinforced expectations of a Federal Reserve rate hike in December. Nonfarm payrolls increased by 165,000, more than double the 65,000 forecast, while the unemployment rate edged lower to 4.1%, underscoring the resilience of the US labor market. Markets are now pricing in an approximately 81% probability of a Fed rate increase in December, up from 71% before the employment report. In recent remarks, San Francisco Fed President Mary Daly suggested that additional rate hikes may still be necessary despite the recent technology stock selloff. Investors are now awaiting key US inflation releases this week for further indications of the Fed’s monetary policy direction, with the CPI due on Tuesday and the PPI scheduled for Friday.
The yield on the US 10-year Treasury note rose to around 4.88% on Monday, extending gains for a second consecutive session as stronger-than-expected employment figures reinforced expectations of a Federal Reserve rate hike in December. Nonfarm payrolls increased by 165,000, more than double the 65,000 forecast, while the unemployment rate edged lower to 4.1%, underscoring the resilience of the US labor market. Markets are now pricing in an approximately 81% probability of a Fed rate increase in December, up from 71% before the employment report.
In recent remarks, San Francisco Fed President Mary Daly suggested that additional rate hikes may still be necessary despite the recent technology stock selloff. Investors are now awaiting key US inflation releases this week for further indications of the Fed’s monetary policy direction, with the CPI due on Tuesday and the PPI scheduled for Friday.