Strong October jobs report sends yields higher
TLT•TLT•TLT•TLT•US nonfarm payrolls rose by 165,000 in October, above forecasts of 65,000, while unemployment fell to 4.1%. Treasury yields rose after the report, and market bets on a December Fed rate hike increased to 78% from 70%.
US nonfarm payrolls rose by 165,000 in October after a revised 60,000 increase in September. The unemployment rate fell to 4.1% from 4.2%; economists had forecast 65,000 new jobs and an unemployment rate of 4.2%.
Treasury yields rose after the data was released before pulling back. The 2-year yield was up 6 basis points at 4.52%, the 10-year yield rose 3 basis points to 4.87%, and the 30-year yield gained 2 basis points to 5.27%. Bets that the Fed will raise rates next month rose to 78% from 70%.
US stocks were mixed, with the Nasdaq up 1.7% and the S&P 500 up 0.6%, while the Dow fell 0.6%. Several market commentators said the strong report could make a near-term rate cut less likely, with inflation and energy prices remaining key factors for Fed policy.
