Treasury yields move higher as investors continue to face economic data blackout
U.S. Treasury yields rose on Friday as investors navigated an economic data blackout caused by the government shutdown, with the 10-year yield reaching 4.108%. The anticipated nonfarm payrolls report was again delayed, leaving economists expecting a job decline of 60,000 and an unemployment rate increase to 4.5%. In lieu of official data, investors turned to alternative sources, such as a Challenger survey indicating a significant rise in job cuts for October, marking the highest number for the month since 2003. This increase in layoffs signals potential economic distress and could influence future market strategies as investors seek clarity amidst uncertainty.
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The 10-year Treasury yield increased by more than 1 basis point to 4.108%, while the 2-year note yield also rose by 1 basis point to 3.576%. The 30-year bond yield similarly climbed 1 basis point to 4.704%.
The Bureau of Labor Statistics was unable to release the nonfarm payrolls report for the second consecutive month, a consequence of the ongoing government shutdown.
Economists had predicted that the nonfarm payrolls report would show a job decline of 60,000 and an increase in the unemployment rate to 4.5%.
The Challenger, Gray & Christmas survey reported 153,074 job cuts in October, which is three times the level from September and 183% higher than the previous month.
This figure represents the highest number of layoffs for any October since 2003 and marks a significant rise compared to the same month last year, contributing to perceptions of economic instability.
2025 has been identified as the worst year for layoffs since 2009, according to the same Challenger survey, indicating a troubling trend in the labor market.