10-year Treasury yield hovers near 3-month high as traders digest economic data
The yield on the 10-year Treasury note hovered near a three-month high as traders combed through a fresh batch of mixed data and hunted for further clues on the rate cut outlook.
The 10-year Treasury yield was down 2 basis point at 4.252%, after briefly rising above 4.3% in the previous session to notch its highest level since July. The yield on the 2-year Treasury rose nearly 2 basis points to 4.137%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Ahead of the all-important October jobs report at the end of the week, investors monitored mixed economic data Wednesday. That included a stronger-than-expected ADP private payrolls report for October, which showed 233,000 new workers hired and came in ahead of a Dow Jones estimate of 113,000. The first preliminary reading of U.S. third-quarter gross domestic product data showed the U.S. economy grew at a 2.8% pace, behind the 3.1% estimate from economists polled by Dow Jones.
The findings come as Wall Street readies for the Federal Reserve’s November meeting, with traders betting on a quarter-point rate cut, according to CME Group’s FedWatch Tool.
The Fed joined several other major central banks in easing monetary policy when it lowered rates by 50 basis points in September.
Policymakers are currently in a so-called blackout period ahead of the Nov. 6-7 meeting, which means they will not be delivering remarks off the back of the data releases, or about their general policy and economic expectations.
