What's happening

  • The yield on the 2-year Treasury BX:TMUBMUSD02Y has risen by 4.1 basis points to 4.63%. Remember, yields move in the opposite direction to prices.
  • The yield on the 10-year Treasury BX:TMUBMUSD10Y has increased by 2.7 basis points to 4.18%.
  • The yield on the 30-year Treasury BX:TMUBMUSD30Y has climbed by 2.5 basis points to 4.28%.

What's driving markets

According to economists, the U.S. Labor Department is expected to release the employment situation report at 8:30 a.m. Eastern, revealing the creation of 190,000 jobs in November.

Strategists at ING have pointed out that the jobs forecast aligns with the "replacement rate" needed for the U.S. economy to accommodate its growing population. They mention that considering striking auto workers returning to work, the forecast is pretty much on track.

Given that the U.S. 10-year yield has already dropped from its peak of around 5%, today's report will provide validation for this decline.

Looking ahead, next week will see two long-end auctions, CPI data, and the Federal Open Market Committee meeting.

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