U.S. Treasury yields ahead of key May jobs report
Yields and prices have an inverted relationship and one basis point equals to 0.01%.
The yield on the 10-year Treasury was up by 2 basis points to 3.628%. The 2-year Treasury was last trading at 4.397% after rising by 5.4 basis points.
Jobs data from the Labor Department on Friday showed payrolls increased by 339,000 last month, far better than expected. Economists surveyed by Dow Jones expecting it to reflect softer job growth of 190,000 compared to April's 253,000. The unemployment rate, meanwhile, ticked up to 3.7%.
On Thursday, the Senate followed the House and voted to pass the Fiscal Responsibility Act, which raises the debt ceiling and limits government spending for two years. This comes just days before the June 5 deadline, on which the U.S. could have defaulted on its debt obligations, causing global economic turmoil.
President Joe Biden is expected to sign the bill into law on Friday after weeks of tense negotiations and jitters about whether lawmakers would approve the deal, which has been criticized by Republicans and Democrats alike.
Elsewhere, investors considered the outlook for the U.S. economy and Federal Reserve monetary policy, keeping an eye on whether the central bank would continue its interest rate hiking campaign.
Fed speakers have given mixed messages about whether they believe further tightening is necessary to cool the economy, including the job market, and bring down inflation. Investors are therefore closely watching economic data that could inform the Fed's decision.
Source: CNBC
