Bond Yields Steady Ahead of U.S. Economic Data

Overview

The bond yields remained relatively unchanged on Friday as investors awaited two crucial reports on the U.S. economy, including the pivotal payrolls data.

Market Movement

• The yield on the 2-year Treasury (BX:TMUBMUSD02Y) stood at 4.87%, declining by 0.5 basis points. It's important to note that yields move inversely to prices.
• The yield on the 10-year Treasury (BX:TMUBMUSD10Y) reached 4.12%, increasing by 0.5 basis points.
• The yield on the 30-year Treasury (BX:TMUBMUSD30Y) climbed to 4.23%, rising by 1.3 basis points.

Factors Influencing the Market

The longer end of the curve experienced a challenging August, with the yield on the 10-year Treasury recording a 13 basis points increase and the 30-year yield witnessing a climb of 19 basis points.

Investors eagerly await the release of the nonfarm payrolls data at 8:30 a.m. Eastern time. Analysts anticipate that around 170,000 jobs were created in August, marking the lowest figure since December 2020 when 268,000 jobs were lost.

Duy further highlighted the significance of the Institute for Supply Management manufacturing data, expected to be released at 10 a.m. Eastern. He mentioned, "While markets expect more of the same ho-hum data, a break above 50 would be psychologically important."