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US Treasury yields jumped to their highest level since November 2023 after the latest employment data was stronger than economists had predicted.
He 10-year Treasury The yield added almost six basis points to 4.745%. He 2-year treasury rose more than 10 basis points to 4.369%.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
December’s nonfarm payrolls reading showed much stronger-than-expected job growth. Nonfarm payrolls increased by 256,000 in the month, compared to 212,000 in November, the Bureau of Labor Statistics reported on Friday. Meanwhile, economists had Employment growth is projected to increase by 155,000 jobs. in December, according to Dow Jones.
The unemployment rate gradually fell to 4.1%, one tenth of a point below expectations.
Strong labor market data makes it less likely that the Federal Reserve will lower interest rates at its next policy meeting later this month. Fed funds futures trading data currently prices less than a 3% chance of a rate cut at the next meeting.
Federal Reserve meeting minutes December, released Wednesday, showed officials were concerned about inflation and the impact of President-elect Donald Trump’s policies, and indicated they would move more slowly on interest rate cuts in 2025.
