Long-dated Treasury yields were steady early Friday, consolidating after a sharp retreat over the previous three sessions, while investors awaited the October jobs report. The yield on the 2-year note moved higher.
What yields are doing
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The yield on the 2-year Treasury note
BX:TMUBMUSD02Y
was at 4.995%, up from 4.975% at 3 p.m. Eastern on Thursday. -
The 10-year Treasury note yield
BX:TMUBMUSD10Y
stood at 4.667% versus 4.668% Thursday afternoon. -
The yield on the 30-year Treasury bond
BX:TMUBMUSD30Y
was 4.824%, ticking up from 4.82% late Thursday.
What’s driving the market
Yields retreated this week after the U.S. Treasury set plans for less debt issuance on the long end of the curve than had been anticipated and investors interpreted remarks by Federal Reserve Chair Jerome Powell as signaling interest rate hikes may have run their course.
Yields extended a retreat Thursday after data showed a rise in initial U.S. jobless claims last week, indicating a strong labor market may be seeing some signs of softening.
Friday brings the October jobs report at 8:30 a.m. Eastern. It’s expected to show the U.S. economy added 170,000 jobs in October after a surprisingly large 336,000 increase in the prior month, according to economists polled by The Wall Street Journal.
The Institute for Supply Management will release its October services index at 10 a.m.
What analysts say
“Any strength in job additions or wages growth data could bring bond traders back to earth and remind them that if the U.S. jobs market — and the economy – remains this strong, the Fed could turn hawkish again,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said in a note.
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