US 10-year bond yield falls below 1.4% on demand for safe assets



FILE PHOTO.  The headquarters of the United States Department of the Treasury in Washington


© Reuters/BRIAN SNYDER
FILE PHOTO. The headquarters of the United States Department of the Treasury in Washington

Leek Karen Pierog

CHICAGO, U.S., Dec 3 (Reuters) – U.S. Treasury yields fell on Friday in a choppy session, and 10-year yields were down 1.4% for the first time since September, as risk aversion took over the markets.

* The 10-year benchmark yield fell to its lowest since September 23, by 1.367%, and finally fell 6.9 basis points to 1.38%. Returns move inversely to prices.

* The 30-year yield fell to its lowest level since January 6, 1.697%, and then traded down 6.2 basis points to 1.7058%.

* The two-year yield, which reflects expectations for short-term interest rates, was last down around one basis point at 0.6111%.

* On Wall Street, the S&P 500 Index was down about 1%.

* Yields rose a bit early in the session after the market digested US employment data, which showed a much smaller increase than anticipated in November, but is likely not a game changer for the Federal Reserve.

* Nonfarm payrolls increased by 210,000 jobs last month, while the unemployment rate fell to 4.2%, the lowest since February 2020, the United States Department of Labor reported. Economists polled by Reuters had forecast payrolls to add 550,000 jobs.

* “At first glance, the numbers were disappointing because they did not meet expectations, but it was not a weak report,” said Kevin Flanagan, head of fixed income strategy at WisdomTree Investments.

* The gap between the yields of two-year and 10-year notes, closely watched by investors, fell to 75.90 basis points, the lowest since December 2020.

(Edited in Spanish by Carlos Serrano and Javier López de Lérida)

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