Treasury yields fall as jobs growth slows in September
TLT•U.S. Treasury yields fell after September payrolls grew by 29,000, below expectations for 90,000, and unemployment reached 4.2%. The 10-year yield fell 5.6 basis points to 5.178%.
1. Jobs miss expectations
The U.S. economy added 29,000 jobs in September, compared with expectations for 90,000, while the unemployment rate rose to 4.2% versus expectations for 4.1%. August job growth was revised down to 133,000 from 162,000.
2. Treasury yields decline
After the report, the 10-year Treasury yield fell 5.6 basis points to 5.178%, the 30-year yield dropped 3.26 basis points to 5.5704%, and the 2-year yield fell 6.86 basis points to 4.718%. Traders priced in an 82% probability that rates would be unchanged at the month’s meeting, up from 74% before the data.
