Treasury Yields Leap as Jobs Data Spur Bets on Bigger Fed Hikes
- Two-year yield climbs as much as 22 basis points to 3.26%
- Data mean Fed unlikely to stop hiking anytime soon: Goldman
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Treasury yields surged on stronger-than-expected US employment data that shore up the case for additional hefty central bank interest-rate increases.
The move was led by two- to five-year yields as swap contracts referencing Federal Reserve meeting dates repriced to levels indicating that another 75-basis-point increase in September is more likely than 50 basis points, the previous consensus. The two-year note’s yield rose as much as 22 basis points to 3.26%, versus 18 basis points for the 10-year. Benchmark yields were trading near session highs late in New York.