As investors wait for the latest jobs, bond yields drop Report

In early trading, the benchmark 10-year Treasury Note yield fell slightly to 1.299%. Tilted yields were seen on the Treasury 30-year bond.

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This story originally appeared on ValueWalk

Bond yields dropped slightly downward to 1.299% in early trading on the benchmark 10-year Treasury note. As yields tend to move in opposite directions to prices, the yield of the Treasury 30-year bond fell to 1.909%.

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Bond yields

CNBC reported that “The labor market will be in focus before the August jobs report, which will play an important part in determining the Federal Reserve’s decision on when and how it will begin unwinding its bond programs.”

Expert economists from Dow Jones have predicted that 750,000 new jobs will be created by August. This would bring the unemployment rate to 5.2%, according to a Dow Jones poll.

Forecasts arrive just a few days after Jerome Powell, Chairman of the Federal Reserve admitted that the central bank is weighing the chance to taper its $120 billion a month bond-buying program before the end of 2021.

He did however emphasize that it was important for the economy to wait until there are more robust employment numbers before any other decisions can be taken.

The 10-year Treasury yield held its breath, although it was still well below the peak at the start of the year.

CNBC quoted Tom Essaye, Sevens Report’s spokesperson on bond yields as saying: “The 10-year yield is continuing to build upside momentum. Powell’s cautious tone Friday will not derail this momentum.”

Waiting On Key Stats

He said that the 10-year yield must break through resistance at 1.36 and then 1.41 before it can test the April downtrend.

In this outlook, investors are keenly waiting on some of the hottest data heading into the last part of the year.

After Tuesday’s data on consumer confidence and Wednesday’s data from the Institute for Supply Management, Friday will see August’s job data released.

ADP will release its private sector payroll data on Friday, which is being “seen in a kind of preview for Friday‚Äôs government jobs report.”

CNBC reported that U.S. stock options were stable in overnight trading Sunday. However, it is possible that U.S. stocks will remain range-bound up to August’s jobs report.

Publited at Mon, 30 August 2021 15:35.46 +0000

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