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Treasury yields are declining ahead of employment reports

Yields on US Treasuries fell on Friday morning prior to the release of the November employment report.

Benchmark yield 10-year government bond It fell below the basis point at 4 am EST to 1.4444%.Yield 30-year government bond We also gave up less than basis points at 1.7644%. Yield is inversely proportional to price, and one basis point is equivalent to 0.01%.

The US Department of Labor plans to publish a November non-farm payrolls report at 8:30 EST. Investors expect strong employment growth last month, and economists surveyed by Dow Jones predict that 581,000 jobs will be added in November.

A strong employment report commented earlier this week that Federal Reserve Chair Jerome Powell said central banks could reduce asset purchases faster than expected due to improvements in the U.S. economy and rising inflation. Will support it.

Bill Street, Chief Investment Officer of Quintet Private Bank, said he expects CNBC’s “Squawk Box Europe” to report strong non-farm payrolls on Friday.

Regarding the direction of monetary policy, Street said it expects interest rates to begin to rise next year. However, he argued that given the location of the pandemic in early 2020, the central bank is actually only aiming to normalize and return to levels.

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“We are no longer in that emergency room from an economic point of view, so we can slowly return to where we can no longer buy assets and begin to consider full employment and interest rates, traditional interest rates. Expectations. “

He said it would probably take another two years to finish the taper and adjust the policy, but added that “even if we get there, it’s still a very relaxed interest rate environment.”

The rest of the week’s set of job data has exceeded expectations.On Thursday, the Ministry of Labor reported: Last week, 222,000 unemployed claims were filed, which is lower than expected... Meanwhile, payroll service company ADP reported on Wednesday that it added 534,000 jobs in November, which is also higher than expected.

For other data released on Friday, Markit will release final purchase manager index readings at 9:45 EST in November. The November ISM non-manufacturing PMI will be announced at 10 am Eastern Standard Time. After that, the factory order data for October will be released at 10 am Eastern Standard Time.

There are no auctions scheduled for Friday.

— — CNBC’s Hannamiao contributed to this market report.

Treasury yields are declining ahead of employment reports

Source link Treasury yields are declining ahead of employment reports

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