investors await key jobs data

U.S. Treasury yields jumped to their highest level since November 2023 after latest job data turned out to be stronger than economists predicted.

The 10-year treasury the yield added nearly six basis points to 4.745%. The 2-year Treasury rose more than 10 basis points to 4.369%.

One basis point is 0.01%, and yields and prices move in opposite directions.

December’s nonfarm payrolls showed a much larger-than-expected increase in jobs. Non-farm payrolls increased by 256.00 for the month compared to 212.00 in November. Bureau of Labor Statistics reported on Friday. Meanwhile, economists had jobs are projected to grow by 155,000 in December, according to Dow Jones.

The unemployment rate fell to 4.1%, one-tenth of a point below expectations.

Good labor market data reduced the likelihood that the Federal Reserve will cut interest rates at its upcoming policy meeting later this month. Currently, data on Fed futures estimates a less than 3% chance of a rate cut at the next meeting.

Minutes of the Fed meeting since December, released on Wednesday, showed that officials are concerned about inflation and the impact of President-elect Donald Trump’s policies, and indicated that they will move more slowly toward lowering interest rates in 2025.