10 year Treasury yields soar on stronger economy.

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U.S. Treasury yields jumped Friday as investors digested a better-than-expected September jobs report.

The 10-year Treasury
yield was higher more than 9 basis points at 3.946%, while the yield on the 2-year Treasury
was 14 basis points higher at 3.85%. Yields and prices have an inverted relationship. One basis point equals 0.01%.

Nonfarm payrolls grew by 254,000 in September, significantly exceeding the Dow Jones consensus estimate of 150,000.

The report points to a solid economy, but it also signals to the market that the Federal Reserve is more likely to move forward with smaller rate reductions ahead. The CME Group’s FedWatch tool shows traders are now pricing in an 89.5% chance of a quarter percentage point rate cut in November. The central bank lowered rates by a jumbo-sized half percentage point in September.

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“I think we are moving back to perhaps a 25 basis point rate cut instead of 50 for November,” Saira Malik, head of Nuveen equities and fixed income, said Friday on CNBC’s “Squawk Box.”

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https://www.cnbc.com/2024/10/04/treasury-yields-september-jobs-report.html