The 10-year Treasury yield surged to its highest level since April, driven by concerns over inflation. The benchmark 10-year Treasury yield rose nearly one basis point to 4.677%, surpassing its previous peak of 4.7% in late April.
Investors also digested strong economic data this week, including a disappointing private sector job creation report from ADP. However, wages did grow, albeit at the slowest pace since July 2021.
Federal Reserve officials indicated they would slow the pace of interest rate cuts due to increased uncertainty over inflation. The minutes stated that “almost all participants judged that upside risks to the inflation outlook had increased,” and that the committee was nearing its target for slowing policy easing. This move is aimed at mitigating the impact of President-elect Donald Trump’s immigration and trade policies on prices.
In contrast, bond yields rose in the previous session after an increase in the December ISM services price index, which showed a higher-than-expected number of job openings for November.
Source: https://www.cnbc.com/2025/01/08/10-year-treasury-yield-jobs-data-fed-minutes.html