U.S. Treasury yields hold ground in jobs-focused week

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U.S. Treasury yields were mostly steady in early Monday trade as investors eyed the all-important employment report at the end of the week, which could underline the economy’s strength as vaccination rates accelerate.

What are Treasurys doing?

The 10-year Treasury note yield
TMUBMUSD10Y,
1.649%

was at 1.654%, down from  1.658% at the end of last Friday, following the sharpest weekly yield drop since December. The 2-year note yield
TMUBMUSD02Y,
0.136%

was also marginally lower, by 0.5 basis point, to 0.135%, while the 30-year bond yield
TMUBMUSD30Y,
2.355%

slid 1.1 basis points to 2.354%.

What’s driving Treasurys?

The bond market has struggled to find its footing amid occasional bouts of selling that have frightened the rest of Wall Street, with analysts fretting higher yields could to punish vulnerable stocks.

That bearish sentiment appeared to fade last week, after the 10-year Treasury note recorded its largest yield decrease since September.

There is no economic data due on Monday ahead of an event-packed week. The official March employment report and the Institute for Supply Management’s manufacturing index are due later this week.

Ultimately, investors will keep a close eye on the recovery of the labor market. The U.S. likely added 600,000-plus new jobs this month, which would be the biggest increase in hiring since early fall.

Read: Hiring is speeding up again and jobs are coming back as the U.S. economy gains steam

What did market participants say?

“The jobs number will be front and center later this week as expectations climb with the continued rollout of multiple vaccines,” said Gregory Faranello, head of U.S. rates at AmeriVet Securities.



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