Bond Market Update

Stellar Jobs Report Fuels Reversal

• U.S. Treasuries have retreated from their opening highs after the Employment Situation report for January beat expectations by a wide margin, showing nonfarm payroll growth of 130,000 (Briefing.com consensus 68,000), average hourly earnings growth of 0.4% (Briefing.com consensus 0.3%), and a dip in the Unemployment Rate to 4.3% (Briefing.com consensus 4.4%). The entire complex has retreated in immediate reaction to the report, sending the 2-yr yield back above its 50-day moving average (3.529%) amid pressure on rate cut expectations.
• Yield Check:
  • 2-yr: +10 bps to 3.55%
  • 3-yr: +9 bps to 3.61%
  • 5-yr: +8 bps to 3.78%
  • 10-yr: +5 bps to 4.20%
  • 30-yr: +4 bps to 4.83%