
U.S. Treasury yields rose on Monday as investors awaited the latest ISM non-manufacturing purchasing managers’ index (PMI) report and continued to digest a slew of jobs data released last week.
The yield on the benchmark 10-year Treasury was up by two basis points to 3.5279% at at 4:53 a.m. ET. The 2-year Treasury yield was last trading at around 4.3273% after climbing by almost five basis points.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Investors are waiting for November’s ISM PMI report for non-manufacturing industries, which will be published on Monday. The figures reflect whether economic activity in these sectors is growing or contracting, and at what pace.
According to a Dow Jones survey, economists are expecting the non-manufacturing PMI to have fallen to 53.7, indicating a slowdown of growth from October’s reading of 54.4.
Markets also continued to assess a series of jobs reports published last week, including nonfarms payroll data, which showed that the U.S. economy added more jobs than expected in November. Average hourly earning also rose more than economists had anticipated.
Tightness in the labor market has historically been closely linked to high levels of inflation. The Federal Reserve has been trying to push back against rising prices and has therefore implemented four consecutive 75 basis point so far this year.
Central bank officials are due to meet again on Dec. 13 and 14, and are widely expected to announce a 50 basis point rate hike then.
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