U.S. Treasury yields were higher on Monday as investors assessed the outlook for interest rates after Friday’s jobs report ahead of a week that will be light on the economic data front.
At 4:20 a.m. ET, the yield on the 10-year Treasury was up by more than three basis points to 4.5891%. The 2-year Treasury was last trading over four basis points higher at 4.8738%.
Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.
Treasurys on Monday made up some of Friday’s losses, when the yield on the 10-year and 2-year Treasurys fell by as much as 9 and 13 basis points, respectively.
That came as October’s nonfarm payrolls figures, which were released Friday, came in lower than expected at 150,000, fewer than the previous Dow Jones estimate of 170,000. October’s reading also marked a significant decline from September’s 297,000.
Friday’s jobs report also showed a slight increase of the unemployment rate from 3.8%, which was also the forecast figure for October, to 3.9%.
The data suggested to investors that the labor market could be easing, raising hopes that the Federal Reserve may not hike interest rates any further. Cooling the jobs market has been one of the central bank’s key aims throughout the rate-hiking cycle that began in March 2022, alongside easing the overall economy and bringing down inflation.
The Fed left interest rates unchanged for the second time in a row last week, keeping them at the same level they have been at since July, but left the option for further rate increases open.
The coming week is light on the economic data front, with no key figures expected Monday. Several Fed officials are, however, expected to give remarks, including two speeches from Fed President Jerome Powell, which investors are hoping will provide fresh hints about the monetary policy and economic outlook.
