Job growth and higher wages have been concerns of the Federal Reserve in its fight against inflation. The central bank is widely expected to announce another 25 basis point increase in benchmark rates on Wednesday and conclude its rate-hiking cycle with another 25 basis point increase in March.
Private employment increased by 106,000 jobs last month,
the ADP National Employment report showed. Economists polled by
Reuters had forecast private jobs increasing 178,000.
The yield on 10-year Treasury notes was down 6.5
basis points to 3.464%. The yield on the 30-year Treasury bond was down 7.1 basis points to 3.590%.
Bond yields move in the opposite direction to prices. A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes , seen as an indicator of economic expectations, was at -71.3 basis points.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 3.1 basis points at 4.176%.
February 1 Wednesday 8:39AM New York / 1339 GMT
Price Current Net
Yield % Change
(bps)
Three-month bills 4.56 4.6772 -0.016
Six-month bills 4.645 4.8228 -0.010
Two-year note 99-225/256 4.1888 -0.018
Three-year note 100 3.8744 -0.040
Five-year note 99-154/256 3.5878 -0.048
Seven-year note 99-196/256 3.5381 -0.054
10-year note 105-96/256 3.4717 -0.057
20-year bond 103-204/256 3.7267 -0.060
30-year bond 107-88/256 3.596 -0.065
DOLLAR SWAP SPREADS
Last (bps) Net
Change
(bps)
U.S. 2-year dollar swap 27.00 -1.50
spread
U.S. 3-year dollar swap 13.75 -0.50
spread
U.S. 5-year dollar swap 5.50 0.00
spread
U.S. 10-year dollar swap -2.25 0.25
spread
U.S. 30-year dollar swap -38.50 0.75
spread
(Reporting by David Randall; editing by Barbara Lewis)
