Stimulus Bets Push 10-Year Treasury Yields to Eight-Month High
- Weak monthly U.S. jobs report prompts another run toward 1%
- Breakeven inflation rates rise to highest since May 2019
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Treasuries declined, pushing 10-year yields to the highest since March, as traders bet that a weaker-than-expected November jobs report will light a fire under Washington policy makers to get an economic stimulus deal done soon.
Under normal circumstances, a bad jobs report might prompt investors to seek a haven such as Treasuries, pushing their prices up and yields down. But as the pandemic damages the U.S. economy, traders are looking a step ahead, wagering that an unhealthy job market will prompt stimulus that diminishes the appeal of bonds.