Treasury yields increased on Monday as investors await key economic data this week. The 10-year Treasury yield rose by 1 basis point to 4.207%, while the 2-year Treasury yield jumped 2 basis points to 4.192%. This follows Friday’s lowest levels since late October.
To gauge the strength of the US economy, investors are closely watching labor data. On Wednesday, the Job Openings and Labor Turnover Survey for October will be released, providing insights into job openings, hires, layoffs, and quits. The November jobs report, due on Friday, is expected to show a surge in 177,500 new jobs, up from 12,000 in October.
The unemployment rate is also set to rise to 4.2%, up from 4.1%. A strong labor report will influence the Federal Reserve’s decision on interest rates during its Dec 17-18 meeting. If labor data supports a lower interest rate cut, it could benefit investors.
Meanwhile, investors are eagerly awaiting the ISM Manufacturing PMI report for November, which will shed light on the manufacturing sector’s health. A reading above 50% indicates expansion, while below 50% suggests decline. Several Fed officials, including Governor Christopher Waller and Chair Jerome Powell, are expected to deliver speeches this week, providing potential insights into interest rate decisions.
Source: https://www.cnbc.com/2024/12/02/us-treasury-yields-investors-look-to-key-labor-data-.html