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US Treasury yields rose to their highest level since November 2023 recent job data came in stronger than economists had predicted.
The 10-year Treasury yields added nearly six basis points to 4.745%. The 2 years Treasury rose more than 10 basis points at 4.369%.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
December’s non-farm payrolls reading showed much stronger growth than expected. Farm payrolls rose 256.00 for the month, up from 212.00 in November. Bureau of Labor Statistics he announced on Friday. Meanwhile, the economists had it employment growth is predicted to increase by 155,000 jobs in December, according to Dow Jones.
The unemployment rate has gradually declined to 4.1%, a tenth of a point below expectations.
Strong labor market data makes it unlikely that the Federal Reserve will cut interest rates at its policy meeting later this month. Fed funds futures are pricing in less than a 3% chance of a rate cut at the next meeting.
Fed meeting minutes from December, which were released on Wednesday, indicated that officials were concerned about inflation and the impact of President-elect Donald Trump’s policies, and that they would be slower to cut interest rates in 2025.
