MW: Treasury yields slip ahead of October jobs report
Long-dated Treasurys extended a week-long rally on Friday, pulling down yields, ahead of nonfarm payrolls and other U.S. jobs data for October.
Yields on the 10-year TMUBMUSD10Y, -0.91% and 30-year notes TMUBMUSD30Y, -0.85% declined 1.3 basis point to 1.798%.and 2.588%, respectively. The two-year yield TMUBMUSD02Y, -0.46% was flat at 0.806%. Bond yields move inversely to prices.
Treasurys have climbed this week, reversing some of last month’s drop, amid a broader risk-off rally for safety plays like gold and the yen, as investors worried about Democratic nominee Hillary Clinton’s shrinking lead over her Republican rival, Donald Trump. According to the Real Clear Politics poll average, Clinton had a 1.7 percentage point lead over Trump, down from more than 7 percentage points in mid-October.
Economists polled by MarketWatch expect the data to show that 175,000 jobs were created last month.
Unless the data is unexpectedly weak, like May’s jobs report, or exceedingly strong, Like the July report, investors will likely remain fixated on Tuesday’s election.
“I think the electionsa re really going to dominate activity,” said Tom di Galoma, managing director for Treasury trading at Seaport Global.
