Indexes little changed as investors await Friday’s payrolls
October 6, 2023
WALL STREET FINISHES SLIGHTLY DOWN, CAUTIONARY AHEAD OF JOBS REPORT
October 6, 2023October 6, 20239:18 AM EDTUpdated an hour ago
[1/2]U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration Acquire Licensing Rights
NEW YORK, Oct 6 (Reuters) – Benchmark 10-year U.S. Treasury yields hit 16-year highs on Friday after data showed that employers added 336,000 jobs in September, well above the 170,000 that was expected by economists.
Data for August was also revised higher to show 227,000 U.S. jobs added instead of the previously reported 187,000.
Monthly wage growth remained moderate, with average hourly earnings rising 0.2% after a similar gain in August. In the 12 months through September, wages increased 4.2% after advancing 4.3% in August.
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“The topline number was much hotter than expected but hourly wages are cooling off nicely,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “This puts in question whether or not the Fed stays on hold.”
Benchmark 10-year notes reached 4.887% and 30-year yields hit 5.053%, both the highest since 2007.
Two-year notes rose as high as 5.151%. They are holding below the 5.202% level hit on Sept. 21, which was the highest since July 2006.
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The closely watched yield curve between two- and 10-year notes steepened to minus 25 basis points, the smallest inversion since October.
October 6 Friday 8:55AM New York / 1255 GMT
| Price | Current Yield % | Net Change (bps) | |
| Three-month bills | 5.36 | 5.52 | 0.018 |
| Six-month bills | 5.36 | 5.5968 | 0.040 |
| Two-year note | 99-194/256 | 5.1298 | 0.105 |
| Three-year note | 99-32/256 | 4.9481 | 0.125 |
| Five-year note | 99-28/256 | 4.8283 | 0.145 |
| Seven-year note | 98-130/256 | 4.8798 | 0.154 |
| 10-year note | 92-72/256 | 4.8704 | 0.154 |
| 20-year bond | 89-112/256 | 5.2367 | 0.163 |
| 30-year bond | 85-248/256 | 5.0386 | 0.152 |
Reporting by Karen Brettell; Additional reporting by Stephen Culp: Editing by Christina Fincher and Susan Fenton
