Treasury yields turned mostly higher Friday morning after remarks by the Cleveland Fed’s Loretta Mester overshadowed August’s nonfarm payrolls report.
What’s happening
-
The yield on the 2-year Treasury
BX:TMUBMUSD02Y
was down slightly at 4.853% versus 4.857% on Thursday. -
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
was 4.16%, up 7 basis points from 4.090% as Thursday afternoon. -
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
was 4.279%, up 7.6 basis points from 4.203% late Thursday.
What’s driving markets
In remarks made at a conference in Europe on Friday, Mester, president of the Cleveland Fed, said inflation “remains too high” despite some progress. Fed officials are trying to determine whether the current level of the fed funds rate target “is sufficiently restrictive and how long policy will need to remain restrictive to keep inflation moving down,” she said.
Her remarks overshadowed Friday’s official jobs data, which investors and traders read as supporting the case for a cooling labor market. Though the U.S. created a higher-than-expected 187,000 new jobs in August, the unemployment rate rose to 3.8% and job gains were much weaker than originally reported for July and June.
Also on Friday, ISM’s manufacturing PMI rose to 47.6% in August from 46.4% in the prior month.
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