Treasury Yields Rise as Employment Data Keep Fed Hikes in Play

After robust US wage growth and job creation throughout September were perceived as keeping the Federal Reserve on a tighter policy course, Treasury rates increased to fresh weekly highs.

The swap contract for the November Fed meeting priced in 73 basis points of tightening, and the policy-sensitive two-year increased by roughly nine basis points to 4.34%, coming within one basis point of a multiyear high. 

The five-year yield increased by as much as 10 basis points to 4.17%, reflecting the expectation that the policy rate will stay high for a considerable amount of time.

 By late in New York, Treasury rates had moderated from their session highs and were still up for the week.

Due to a US holiday, the bond market is closed on Monday.

"the jobs number indicates to another raise of 75 basis points next month, the labour market seems stable, and it's difficult to identify a crack in the armour of economic data at this time."

Instagram
Facebook

Follow us on

wealthbaba.in

Wealth Baba

+91-7977479131

Leaving for the US to attend G-20 and IMF meetings is the finance minister