US Bond Yields Unchanged Awaiting Jobs Data

Treasury yields were little-changed Tuesday, with government debt trading under the influence of outside markets and technical indicators as investors awaited economic data due later in the week, including the September jobs report.

“We expect sentiment-driven, range-bound trading today ahead of key U.S. [economic] releases later this week (nonmanufacturing ISM, ADP, payrolls). Those data could influence Fed rate increase expectations,” wrote analysts at KBC Bank in Brussels.

The yield on the 10-year U.S. Treasury note  edged up 0.2 basis point to 1.626%. The 2-year Treasury yield  was flat at 0.802%, while the 30-year Treasury bond yield  edged up 0.2 basis point to 2.338%. Yields and debt prices move in opposite directions.

Richmond Federal Reserve President Jeffrey Lacker, in a Tuesday speech, said the Fed should adopt a strategy of pre-emptive interest-rate hikes similar to what it did in 1994. The remarks had little market impact. Lacker isn’t a voting member this year of the central bank’s rate-setting Federal Open Market Committee and has been a consistent advocate for higher rates since last summer.

Independent rates strategist Ian Lyngen said the near-term focus is on the technical landscape.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza