Market Snapshot: U.S. 10yr, 2yr Yields Drop Following December Jobs Report

Yields on 10-year U.S. Treasury securities fell following today’s better than expected jobs report, according to data from Tradeweb.

The bid yield on the 10-year U.S. Treasury note was 2.135% as of 2:18 PM EST, down 1.8 bps from yesterday’s close of 2.153%. Today’s intraday low was 2.119%, while the intraday high was 2.197%.

The bid yield on the 2-year U.S. Treasury note was 0.948% as of 2:18 PM EST, down 0.8 bps from yesterday’s close of 0.956%. Today’s intraday low was 0.932%, while the intraday high was 1.000%.

These moves follow the release of today’s jobs report that showed a seasonally-adjusted increase of 292,000 in December compared to an expectation of about 200,000 additional. Revisions for October and November showed a gain of 50,000 jobs, and the economy added an average of 221,000 jobs per month in 2015. 

This movement comes amid the release of jobless claims data showing a decrease to 277,000 from the previous week’s unrevised 287,000, continued debate about the number of potential Fed rate increases, and the World Bank cutting its global economic growth forecast for the third straight year. 

In Europe, the bid yield on the 10-year German Bund was 0.529%, down 1.9 from yesterday’s close of 0.548%. Today’s intraday low was 0.506%, while the intraday high was 0.549%. This follows ratings agency S&P affirming an ‘AAA’ rating for Germany with a stable outlook. 

The charts below are based on indicative, real-time data from Tradeweb.

CHART 1: U.S 10-Year Treasury Yields – January 9, 2015 – January 8, 2016 (12 Month View)

CHART 2: U.S 2-Year Treasury Yields – January 9, 2015 – January 8, 2016 (12 Month View)

CHART 3: German 10-Year Bund Yields – January 9, 2015 – January 8, 2016 (12 Month View)