Investors expect key performance data

U.S. Treasury yields rose to their highest level since November 2023 after the latest jobs data came in stronger than economists had expected.

The 10-year Treasury yield was up nearly 6 basis points at 4.745 percent. The 2-year Treasury rose more than 10 basis points to 4.369 percent.

One basis point is equal to 0.01% and yields and prices move in opposite directions.

December’s nonfarm payrolls reading showed stronger-than-expected job growth. Non-agricultural wages increased by 256.00 per month from 212.00 in November. Bureau of Labor Statistics He reported on Friday. Meanwhile, economists had predicted an increase of 155,000 jobs in December, according to Dow Jones.

The unemployment rate fell to 4.1%, one-tenth below expectations.

The strong labor market data makes it less likely that the Federal Reserve will cut interest rates at its policy meeting later this month. Fed funds futures trading data are currently pricing in less than 3% odds on the next meeting.

Minutes of the Fed’s meeting released Wednesday showed that officials are concerned about inflation and the impact of President Donald Trump’s policies, and indicated that they will move more slowly on rate cuts in 2025.