Treasury yields inch higher as investors await key jobs report — SkimNews
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- 10-year Treasury yield rose less than 1 basis point to 5.243% on Friday, after climbing to multiyear highs Thursday before retreating
- 30-year Treasury bond yield increased over 1 basis point to 5.618%, having hit its highest level in 24 years the previous day
- 2-year Treasury note yield was little changed at 4.787%, with the yield curve steepening as long-end yields led the move
- European 10-year yields fell around 3 basis points across major economies after this week's sharp global sell-off, as pressure on government bonds eased elsewhere
- September nonfarm payrolls report is due Friday morning, with the Dow Jones consensus estimating 84,000 jobs added and the unemployment rate holding steady at 4.1%
- Deutsche Bank analysts said the jobs data matters because 'continued data resilience has been a huge factor supporting US risk assets' and has 'given the Fed space to start hiking rates'
- CME FedWatch Tool data shows traders pricing in a 72% chance the Federal Reserve keeps interest rates unchanged at its October meeting
Why it matters: With the 30-year at 5.618% and the 10-year at 5.243%, the U.S. government and mortgage borrowers face sharply higher long-term borrowing costs; a payrolls print near the 84,000 consensus could either validate Fed patience or, per Deutsche Bank's framing, 'give the Fed space to start hiking rates.'
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