
US Treasury Yields Mixed as Market Anticipates October Jobs Report
As investors and analysts await the official jobs report for October, the 2-year and 10-year Treasury yields moved in opposite directions.
As investors and analysts await the official jobs report for October, the 2-year and 10-year Treasury yields moved in opposite directions.
Rise in the US Treasury Yields put pressure on the market resulting into bearish weekly start on Wall Street. Yields surge past 5% with Fed planning for higher-than-longer interest rates.
Last week, the release of September’s Consumer Price Index (CPI) data showed a monthly increase of 0.4% and an annual increase of 3.7%.
Treasury yields fell in the US as the war between Israel and Hamas rages on, with several thousand dead and wounded.
Since 2007, the 10-year Treasury Yield has struggled to reach its long-term average of 4.5%.
The mixed economic data that has emerged is at the root of the uncertainty surrounding the Fed’s monetary policy.
The 10-year Treasury yield rose while the 2-year yield fell as investors considered the implication of the Federal Reserve’s meeting minutes.
Treasury Yields are falling further due to general uncertainty in the market regarding interest rates and monetary policies.
The ongoing negotiations surrounding the US debt ceiling have been a key focal point for investors as the June 1 deadline approaches.
Amid the broader banking crisis, investors are still concerned about the next move of the government in terms of Federal Reserve policy.
Mortgage rates jumped 7.1% Thursday following last week’s 28-year low decline in homeownership applications due to raging inflation.
The 2-year and 10-year Treasury yields rose following the recent 25-basis-points hike. The 2-year yield hit a high not seen since 2006.
The US remains the global economy, and though the dollar is weakened, it is still appreciating in value when compared to its peers.
As the new year kicks off and 2023 trading begins, investors’ fingers are crossed on key economic metrics expected to be available in the coming week.
The 2-year and 10-year Treasury yields increased as investors continue to monitor cues to set the pace for 2023.