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Yields on US Treasuries were trading higher on Friday ahead of the Department of Labor’s February employment report, which is expected to post steady employment gains.
What do treasures do?
The 10-year Treasury bill pays TMUBMUSD10Y,
rose 1.6 basis points to 1.566%, after peaking at 1.582% in overnight trading. The rate of the 2-year notes TMUBMUSD02Y,
was stable at around 0.143%, while the 30-year bond yield TMUBMUSD30Y,
edged down 0.2 basis points to 2.306%.
What motivates treasures?
Investors will be watching the Labor Department’s report on non-farm employment closely, as the US economy is expected to add 210,000 jobs last month. The unemployment rate is expected to hold steady at 6.3% and the average hourly wage will increase by 0.2%.
Markets are trying to find their place after Federal Reserve Chairman Jerome Powell declined to say on Thursday that he would oppose the recent rise in long-term bond yields, though he would continue to monitor whether Turmoil in the treasury bill market translated into tighter financial conditions. .
See: Powell says current policy is appropriate even as turmoil in the bond market caught his attention
His remarks renewed the bond market liquidation this week, sending the 10-year Treasury yield close to 1.60% on Friday’s trading.
Other major central bankers also made remarks with Bank of Japan Governor Haruhiko Kuroda saying he would not widen the range of the country’s long-term borrowing rate, a move that would have allowed yields to increase.
The yield on Japanese 10-year government bonds TMBMKJP-10Y,
fell 4.3 basis points to 0.093%.
What did market players say?
“The vigilantes of the bond market can shout whatever they want, but for now, the Fed has no intention of twisting. Maybe that changes if bond markets get messy enough to trigger widening credit spreads, but that’s not yet the case, ”said Kit Juckes, strategist at Société Générale.
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