US Treasury yields jumped to their highest level since November 2023 after the latest job data it came stronger than economists predicted.
The 10-year treasury the yield added nearly six basis points to 4.745%. The 2-year treasury 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 data showed a much larger-than-expected increase in the number of jobs. Non-farm payrolls increased by 256.00 for this month, compared to 212.00 in November, Institute for Labor Statistics he reported on Friday. Meanwhile, economists had predicts an increase in the number of jobs by 155,000 December, according to Dow Jones.
The unemployment rate fell to 4.1%, one tenth of a point below expectations.
Strong labor market data makes it less likely that the Federal Reserve will cut interest rates at its upcoming policy meeting later this month. Fed funds futures trading data currently has a less than 3% chance of a rate cut at the next meeting.
Minutes from the Fed meeting from December, released on Wednesday, showed that officials are concerned about inflation and the impact of President-elect Donald Trump’s policies and indicated that they will be slower to cut interest rates in 2025.
