U.S. Treasury yields jumped to their highest levels since November 2023 after the latest jobs data was stronger than economists expected.
The 10-year Treasury yield rose nearly 6 basis points to 4.745%. The 2-year Treasury note surged more than 10 basis points to 4.369%.
1 basis point is equal to 0.01%, and the yield and price movements are opposite.
December non-farm payrolls data showed job growth was much stronger than expected. Nonfarm payrolls surged by 256,000 this month, up from 212,000 in November. Bureau of Labor Statistics reported on Friday. Meanwhile, economists expect job growth to increase by 155,000 jobs in December, according to Dow Jones data.
The unemployment rate edged down to 4.1%, one-tenth of a point lower than expected.
Strong labor market data makes it less likely that the Federal Reserve will cut interest rates at its policy meeting later this month. Federal funds futures trading data currently points to less than a 3% chance of a rate cut at the next meeting.
Minutes of the Federal Reserve’s December meeting released on Wednesday showed officials were concerned about inflation and the impact of President-elect Donald Trump’s policies and said they would be slower to cut interest rates in 2025.
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