Treasury yields rose Friday ahead of the December payrolls report on Friday, following the biggest one-day yield rise for the benchmark government bond in a month.
What’s happening
-
The yield on the 2-year Treasury
BX:TMUBMUSD02Y
was 4.42%, up 4.2 basis points. -
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
was 4.04%, up 3.7 basis points. The yield on the 10 year rose by 8.5 basis points on Thursday, the largest move since Dec. 8, according to Dow Jones Market Data. -
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
was 4.18%, up 2.9 basis points.
What’s driving markets
Expectations are for the Labor Department to report 170,000 nonfarm jobs were created last month, and for the unemployment rate to tick up a tenth to 3.8%. Hourly wages are seen rising by 0.3%.
Economists at Goldman Sachs have a slightly above-market forecast, of 190,000 jobs created. They note the seasonal adjustment factors could provide a tailwind as well as milder-than-usual winter weather in the Northeast and Midwest. But they did say lackluster holiday spending suggests a decline in retail payrolls along the lines of the 38,000 decline in November.
Bloomberg News reported a big options bet made on Thursday, that the 10-year yield will rise to as high as 4.15%, that could lead to a $10 million profit if the yield ends at 4.2%.
