U.S. Treasury yields edged higher on Wednesday as markets await the release of labor data later in the week. As of 4:28 a.m. ET, the benchmark 10-year yield had risen three basis points to 4.2478%, while the 2-year yield increased one basis point to 4.1814%.
Normally, Treasuries tend to move in opposition to price so, one can tell that when yields of Treasuries move upwards, it usually moves inversely with the drop in the price for Treasuries. Market is more sensitive to the labor report releases. Among those is the report of ADP Employment Change that is set to be issued later Wednesday. This private sector employment change is forecasted to increase by 163,000 jobs during November, as reported by economists polled by Dow Jones.
Outside of that, the U.S. Job Openings and Labor Turnover Survey published Tuesday was also able to provide information on job openings, which have climbed to 7.74 million in October, higher than what investors expected at 7.5 million and more than what have been reported last month.
This has increased hope for the critical November jobs report, which is expected Friday – this being the most important economic publication in a week. Economists estimate that the U.S. economy had added 214,000 jobs in November, largest on record since October added only 12,000 jobs. And the jobless rate is now expected to increase to 4.2% from 4.1% in October.
It would also be the last labor-market report ahead of the Federal Open Market Committee’s meeting on December 17-18, which is going to be a defining meeting and where policymakers may choose to hike interest rates or not.
The direction is likely to be given by the strength of labor. Other than this, a watch is being kept by the investors on the various statements made by Federal Reserve Chairman Jerome Powell, which are to be presented at New York on Wednesday. His remarks could further clarify the central bank’s monetary policy outlook.
