Treasury Yields Mixed as Jobs Data Boosts Rate Hike Bets
U.S. Treasury yields showed mixed results on Monday as investors weighed a strong jobs report against upcoming inflation data. While two-year yields pulled back from recent highs, the benchmark ten-year yield rose as markets priced in a 70% chance of a rate hike by December.
United States Treasury yields were mixed on Monday after a stronger-than-expected jobs report increased the probability of a Federal Reserve interest rate hike. The 2-year note yield fell 0.9 bps to 4.153% after reaching a 15-month high on Friday. The market shift follows data showing fed funds futures traders now see a 70% chance of a rate increase by December.
### Rate Hike Bets Shift on Labor Strength Fed funds futures priced in a higher likelihood of a rate increase by year-end following Friday's jobs report. This shift follows earlier concerns that a softening labor market would constrain the Fed. WisdomTree head of investment strategy Kevin Flanagan noted that while the front end of the curve has priced in a hike, the Fed likely requires more data.
