US Treasury prices jumped on Friday amid a modest rise and fall, driven by weak employment reports in September.
In recent transactions, the benchmark 10-year US Treasury securities yielded 1.593% and 1.593% just before the report’s release on Thursday at 1.570%, according to TradeWeb.
Yields, which rise when bond prices fall, initially fell after the employment report, rose overnight, but soon began to rise again.
Friday’s report shows the economy added 194,000 jobs in September, well short of economists’ expectations of a 500,000 job growth. Still, August employment growth was revised upward to 366,000 from a previous estimate of 235,000, so some analysts say the report was not as bad as it would have been otherwise.
When it comes to employment reporting, the main question for investors and analysts is whether there is enough data for the Federal Reserve Board’s plans to begin cutting bond purchases in early November. Down.
Analysts said lower bond purchases from central banks could put pressure on Treasury yields. Many investors also say the first step is for central banks to start a tapering process to raise short-term interest rates to near-zero from current levels, which could have an even greater impact on bond prices. Think of.
Despite disappointing labor data, some analysts said they still expect the central bank to stick to its slim plans.
In a note to clients, Ian Ringen, head of US interest rate strategy at BMO Capital Markets, said the salary was “a little less than 200,000, which was suggested by many to be the minimum taper.” However, last month’s upward revision “should be more than enough to keep the November announcement program going.”
Treasury yields have skyrocketed in recent weeks, following a September policy meeting of the Federal Reserve Board (FRB).
The 10-year yield is still below the 2021 high of 1.794% set at the end of March, but well above the recent low of 1.173% in early August.
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