FX.co ★ US 10-Year Yield Holds Near 5-Month High

The yield on the 10-year US Treasury note climbed to a four-month high of 4.2% before slightly retreating to 4.17%, influenced by a mixed jobs report that sustained uncertainty regarding the scale of interest rate cuts expected from the Federal Reserve this year. The US economy added 50,000 jobs in December, which fell just short of market forecasts, while the unemployment rate experienced a notable drop to 4.4%. This outcome is in line with the recent trend of a labor market characterized by low hiring and low firing, reinforcing predictions that the US central bank may hold off on further rate reductions next month. Meanwhile, longer-term Treasury securities found some support following President Trump's directive for Freddie Mac and Fannie Mae to purchase $200 billion in mortgage-backed securities, aimed at reducing mortgage rates.