US Treasury yields increased on Thursday as investors await the January nonfarm payrolls report. The 10-year yield gained 1 basis point to 4.43%, while the 2-year yield rose 2 basis points to 4.21%. One basis point is equivalent to 0.01%.
The relationship between yields and prices is inverted, meaning that when prices rise, yields fall, and vice versa. Investors are looking forward to the nonfarm payrolls report on Friday for clarity on US employment numbers.
Economists predict 175,000 jobs were added in January, with an unchanged unemployment rate of 4.1%. The latest weekly jobless claims report will also be monitored. On Wednesday, ADP reported a private payrolls growth of 183,000 jobs, exceeding economists’ predictions.
However, concerns about tariffs have eased following US President Donald Trump’s announcement to suspend tariffs on Mexican and Canadian goods for 30 days. China has responded with retaliatory duties on select products, including liquefied natural gas, set to take effect by February 10.
Source: https://www.cnbc.com/2025/02/06/us-treasury-yields-investors-look-ahead-to-nonfarm-payrolls-report-.html