NEW YORK: US Treasury prices dropped, and bond yields climbed after a gauge of job openings exceeded economist estimates, signalling labour market resilience that could give the Federal Reserve room to raise interest rates.
The bond selloff pushed yields up by three to five basis points across various maturities. The US 10-year Treasury yield rose more than five basis points to reach a session high of 4.97% after the data release.
Traders factored in higher probabilities of at least two additional Federal Reserve rate hikes in the near term. Fixed-income markets responded to indications that strong economic demand reduces pressure on central bankers to ease monetary policy.
Extreme volatility in oil prices amid geopolitical tension also buffeted bond movements, compounding broader investor caution.
Read: US Economy Defies Federal Reserve Rate Hike as Yields Rise
Portfolio managers navigated friction between equity valuations and sticky underlying inflation as market participants awaited the upcoming official US employment report. US Treasury prices dropped and yields climbed after job openings exceeded economist forecasts.
(With input from Bloomberg)
