The rate of return is 10-Year Treasury Bond Gains as traders play down October employment data Affected by hurricanes and worker strikes, job growth was weak and far below Wall Street expectations.
10-Year Treasury Bond Yield It rose nearly 10 basis points to 4.382%. this 2-Year Treasury Bond Yield rose 5 basis points to 4.216%. The rise in yields marks a continuation of the recent rebound since October.
Yields and prices move in opposite directions. 1 basis point equals 0.01%.
The October nonfarm payrolls report showed only 12,000 jobs were added during the month. Economists surveyed by Dow Jones expected employment to increase by 100,000.
The Bureau of Labor Statistics warned that the report was affected by hurricanes and the Boeing strike. These complications may have weakened traders’ reactions to mistakes.
The unemployment rate held steady at 4.1%.
The unclear jobs report may play a role in next week’s meeting of Federal Reserve officials, when the central bank will decide how to follow up on September’s 50 basis point interest rate cut.
“While the Fed may attribute some of the weakness in today’s data to one-time factors, today’s softness in data suggests the Fed will continue its easing cycle at next week’s meeting. Data comes rain or shine, but November is sunny Goldman Sachs Assets Lindsay Rosner, head of multi-sector fixed income investments at the management company, said in a statement that the rate cut would be 25 basis points.
This week investors weighed a slew of key economic reports due this week, including Thursday’s economic report personal consumption expenditures price indexthe inflation measure favored by the Federal Reserve.
In September, the index increased by 2.1% year-on-year and 0.2% quarter-on-quarter. Both data were in line with expectations of economists surveyed by Dow Jones.
PCE is the last key inflation data released before the Fed makes its next interest rate decision on November 7.
