10-year Treasury yield jumps after economic data points to sticky inflation

10-year Treasury yield jumps after economic data points to sticky inflation


U.S. Treasury yields rose on Tuesday after economic data suggested services inflation is proving hard to tame.

The 10-year Treasury yield climbed more than seven basis points to 4.693%, and earlier hit an intraday high of 4.699%, reaching its highest level since April 26. The 2-year Treasury yield gained more than two basis points to 4.299%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

The moves came after the December ISM services price index came in at 64.4, up from 58.2 in November. Meanwhile, the Job Openings and Labor Turnover Survey (JOLTS) showed a higher-than-expected number of openings.

The combination of rising prices and a high level of job openings could cause traders to dial back expectations for Federal Reserve rate cuts in 2025.

ADP’s private payrolls report will follow Wednesday and is forecast to show that 130,000 jobs were added in December, before the December jobs report from the Bureau of Labor Statistics is expected Friday. That will include nonfarm payrolls data as well as the unemployment rate in the U.S.

Investors will be paying close attention to the data as it could influence their view on the potential outlook for monetary policy, specifically interest rates. It comes after the central bank in December suggested less interest rate cuts were on the horizon ahead of its next meeting on Jan. 28-29.

The Fed is widely expected to leave rates unchanged then, with traders last pricing in an around 93% chance of interest rates being kept steady according to CME Group’s FedWatch tool.

Minutes from the Fed’s December meeting are set to be released Wednesday and investors will be scanning for those for additional insight into policymakers’ thinking and their expectations for the economy.



Source

Stock futures rise as traders prepare to end volatile trading week rocked by tariffs: Live updates
World

Stock futures rise as traders prepare to end volatile trading week rocked by tariffs: Live updates

Traders work on the floor of the American Stock Exchange (AMEX) at the New York Stock Exchange in New York, US, on Thursday, April 10, 2025. Michael Nagle | Bloomberg | Getty Images Stock futures moved higher on Thursday night as investors look to close out a volatile week, punctuated by sharp swings for the […]

Read More
U.S. dollar index suffers biggest drop since 2022, hits new low for the year
World

U.S. dollar index suffers biggest drop since 2022, hits new low for the year

The ICE U.S. Dollar Index dropped sharply again on Thursday, putting the greenback on track for its worst day since 2022. The index, which measures the U.S. dollar against a basket of global currencies, was last down 1.83% to 101.02. At one point in the session, it slipped below the 101 level. This would mark […]

Read More
Trump’s triple-digit tariff essentially cuts off most trade with China, says economist
World

Trump’s triple-digit tariff essentially cuts off most trade with China, says economist

U.S. President Donald Trump attends a cabinet meeting at the White House in Washington, D.C., U.S., April 10, 2025. Nathan Howard | Reuters President Donald Trump’s tariff increase on imports from China would basically end most trade between that country and the U.S., according to economist Erica York. “It depends on how narrowly the tariff […]

Read More