FX.co ★ Treasury Yields Stabilize

The yield on the US 10-year Treasury briefly declined before stabilizing at approximately 4.14% on Thursday, as market participants processed the delayed employment report. The report revealed that the US economy added 119,000 jobs in September, significantly exceeding the anticipated 50,000. At the same time, the unemployment rate rose slightly to 4.4%, and hourly wage growth decelerated to 0.2%, marking the slowest pace in three months. In parallel, initial jobless claims dropped to 220,000 last week. This new labor market data, released after the conclusion of the government shutdown, suggested signs of economic stabilization. Despite the report, traders continue to anticipate that the Federal Reserve will maintain current interest rates next month, with the likelihood of a 25 basis points rate cut remaining at around 36%. The minutes from the latest Federal Open Market Committee (FOMC) meeting, released yesterday, revealed significant disagreements among policymakers in October regarding the necessity for further interest rate reductions. Additionally, the Bureau of Labor Statistics (BLS) announced it will not publish the October jobs report, a factor likely to further obscure the Federal Reserve's economic forecast.