U.S. Treasury yields surges, brushing off recent disappointing jobs report. On Tuesday morning, Treasury yields rose. Labor Department data showed U.S. employment growth pulled back on hiring in August after a surge in Covid-19 cases.
According to Tradeweb, the yield on the benchmark 10-year Treasury note finished Friday’s session at 1.322% up from 1.293% at Thursday’s close. The 30-year bond yield rose to 1.942%, from 1.906% Thursday.
The yield on the benchmark 10-year Treasury note jumped 3 basis points to 1.353% at 3:50 a.m. ET. The yield on the 30-year Treasury bonds rose nearly 3 basis points, advancing to 1.97%. Yields move conversely to prices and 1 basis point is equal to 0.01%.
On Tuesday, treasury yields continued to surge even after Friday’s nonfarm payrolls report that appeared in short of expectations. According to the jobs report, 235,000 payrolls were created in August, while economists had forecasted 720,000 jobs.
The jobs report tempered expectations that the Federal Reserve would begin reducing its monthly bond purchases this year.
Federal Reserve Chair Jerome Powell said the central bank could begin reducing its monthly bond purchases this year.
There are no major economic data releases due out on Tuesday.
Treasury auctions are expected to be conducted on Tuesday for $51 billion of 13-week bills, $48 billion of 26-week bills, $34 billion of 52-week bills, $45 billion of 21-day bills, and $58 billion of 3-year notes.