Investors aggressively sold off U.S. government debt on Friday after a stronger-than-expected job report for November, sending the policy-sensitive 2-year yield up by the most in five months.What happened
The yield on the 2-year Treasury
BX:TMUBMUSD02Y
jumped 14.7 basis points to a more-than-one-week high of 4.725%, from 4.578% on Thursday. That’s the largest one-day increase since June. For the week, the 2-year rate rose 16 basis points, according to figures from Dow Jones Market Data.
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
rose 11.5 basis points to 4.244%, from 4.129% Thursday afternoon. The rate ended the week up by 1.9 basis points.
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
climbed 8.1 basis points to 4.325%, from 4.244% late Thursday. For the week, the rate finished down by 9.2 basis points.
Friday’s moves were the largest one-day jumps for the 10-year and 30-year rates, respectively, since Oct. 17 and Nov. 9.
What drove markets Data released on Friday showed that the U.S. added a higher-than-expected 199,000 jobs in November, above the 190,000 estimate of economists polled by the Wall Street Journal. The solid job gain was accompanied by a drop in the unemployment rate, to 3.7% from 3.9%.See also: Solid job growth, sharp wage gains sends Treasury yields up by the most in months
The data prompted fed-funds futures traders to dial back on their expectations for a rate cut by the Federal Reserve early next year. They now see a 45.6% chance of at least a 25-basis-point cut by March, down from 64.5% a day ago, according to the CME FedWatch tool. Thi …
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The yield on the 2-year Treasury
BX:TMUBMUSD02Y
jumped 14.7 basis points to a more-than-one-week high of 4.725%, from 4.578% on Thursday. That’s the largest one-day increase since June. For the week, the 2-year rate rose 16 basis points, according to figures from Dow Jones Market Data.
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
rose 11.5 basis points to 4.244%, from 4.129% Thursday afternoon. The rate ended the week up by 1.9 basis points.
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
climbed 8.1 basis points to 4.325%, from 4.244% late Thursday. For the week, the rate finished down by 9.2 basis points.
Friday’s moves were the largest one-day jumps for the 10-year and 30-year rates, respectively, since Oct. 17 and Nov. 9.
What drove markets Data released on Friday showed that the U.S. added a higher-than-expected 199,000 jobs in November, above the 190,000 estimate of economists polled by the Wall Street Journal. The solid job gain was accompanied by a drop in the unemployment rate, to 3.7% from 3.9%.See also: Solid job growth, sharp wage gains sends Treasury yields up by the most in months
The data prompted fed-funds futures traders to dial back on their expectations for a rate cut by the Federal Reserve early next year. They now see a 45.6% chance of at least a 25-basis-point cut by March, down from 64.5% a day ago, according to the CME FedWatch tool. Thi …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]