INTERNEWSTIMES.COM – Treasury yields edged lower on Friday morning as investors braced for the release of the highly anticipated September jobs report.
The 10-year Treasury yield dipped by one basis point to 3.84%, while the 2-year Treasury yield also fell by one basis point to 3.697%. This downward movement in yields reflects a cautious approach from investors as they await key economic data.
The previous day’s ADP data showed a robust increase in private payrolls, exceeding expectations, which had pushed Treasury yields higher. However, the focus now shifts to the broader jobs report, which is expected to reveal a 150,000 increase in nonfarm payrolls, with the unemployment rate holding steady at 4.2%.
The September jobs report carries significant weight as the Federal Reserve continues to navigate a delicate balancing act between supporting the economy and controlling inflation. The recent 50-basis-point interest rate cut by the Fed was driven by the need to bolster the labor market and the economy.
The strength of the jobs data could influence the Fed’s decision on whether to cut rates again in the coming months and by how much. Market pricing currently suggests a higher likelihood of a smaller, 25-basis-point rate cut, with a lower probability of another half-percentage-point reduction. (Red)
