Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
US Treasury yields jumped to their highest level since November 2023 after the latest work data it came in stronger than economists had predicted.
U Treasury to 10 years the yield added nearly six basis points to 4.745%. U 2 year treasure rose more than 10 basis points to 4.369%.
One basis point equals 0.01% and yields and prices move in opposite directions.
December’s nonfarm payrolls reading showed much stronger than expected job growth. Nonfarm payrolls rose by 256.00 for the month, from 212.00 in November, the Bureau of Labor Statistics reported on Friday. Meanwhile, economists had it predicts that job growth will increase by 155,000 jobs in December, according to Dow Jones.
The unemployment rate decreased to 4.1%, a tenth of a point below expectations.
Strong labor market data makes it less likely that the Federal Reserve will lower interest rates at its policy meeting later this month. Fed funds futures trading data is currently pricing in less than a 3% chance of a rate hike at the next meeting.
Fed meeting minutes from December, released Wednesday, showed that officials were concerned about inflation and the effect of President-elect Donald Trump’s policies, and indicated that they would move more slowly on interest rate cuts in 2025.
