BOND REPORT: Treasury Yields Higher As Investors Brace For Key Jobs Data

By Sunny Oh Features Dow Jones Newswires

Economists have forecast 75,000 jobs for September

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Treasury prices fell, lifting yields, on Friday but action was muted as investors awaited a key employment report that could influence bond trading for the session.

What are Treasury yields doing?

The 10-year Treasury yield rose to 2.364%, from 2.352% on late Thursday, according to WSJ Market Data. The 2-year Treasury yield edged higher to 1.500%, versus 1.495%. Meanwhile, the 30-year bond yield was up by a basis point to 2.901%. Bond prices move in the opposite direction of yields.

What could drive markets?

Traders are gearing up for the jobs report, arguably the most important piece of economic data released this week. Nonetheless, investors might discount the number because the effect of the Hurricanes Irma, Harvey and Maria, which hit landfall last month, and have distorted the economic data in September.

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A rush of Fed speakers after Thursday's busy docket will give investors plenty to think over as they consider the likelihood of a December rate increase, and the terminal point of interest rates. Higher interest rates can weigh on the value of government paper, but without higher inflation, long-dated Treasurys can prove resilient to the corrosive effects of tighter monetary policy. Of the bevy of speeches, New York Fed President William Dudley is likely to attract the most attention as his remarks will directly address the outlook for monetary policy.

What did market participants say?

"Whatever the number is will be shrugged off and given a pass because of the effects from the hurricanes, with a possible exception being on the upside if we get a big number despite the storms," said Chief Market Strategist Brett Ewing of First Franklin.

What data will come out?

Which Fed speakers are scheduled to speak?

(END) Dow Jones Newswires

October 06, 2017 08:30 ET (12:30 GMT)