U.S. bond yields were little changed Friday as investors waited for the jobs report, for signs on whether the labor market is cooling off enough to warrant a change in Federal Reserve policy.
What’s happening
-
The yield on the 2-year Treasury
TMUBMUSD02Y,
4.746%
rose 1 basis point to 4.74%. Yields move in the opposite direction to prices. -
The yield on the 10-year Treasury
TMUBMUSD10Y,
4.146%
fell 2 basis points to 4.14%. -
The yield on the 30-year Treasury
TMUBMUSD30Y,
4.195%
was steady at 4.19%.
What’s driving markets
Economists polled by The Wall Street Journal expect payrolls growth to decelerate to 205,000 in October, with the unemployment rate staying at 3.5%.
At Goldman Sachs, which is forecasting a 225,000 gain, economists argue that the tight labor market incentivizes firms to frontload autumn and pre-holiday hiring. Other data including from ADP, Homebase, and the Census household pulse report also are suggestive of strong growth.
“We expect today’s report for October to show slower employment growth than in September but still too high to reassure the Fed,” added Rhys Herbert, a senior economist for Lloyds Bank.
