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U.S. Treasury yields showed no clear direction on early Friday’s trade ahead of the release of the Labor Department’s October employment report.
Beyond the U.S. economic data, investors will monitor the last election results from key battleground states arriving throughout the day.
What are Treasurys doing?
The 10-year Treasury note yield TMUBMUSD10Y, 0.807% fell 0.7 basis point to 0.771%, while the 2-year note rate TMUBMUSD02Y, 0.152% was down 0.2 basis point to 0.149%. The 30-year bond yield TMUBMUSD30Y, 1.587% edged 0.5 basis point lower to 1.540%.
What’s driving Treasurys?
The U.S. official employment report is expected to yield an increase of 530,000 jobs in October, down from a gain of 663,000 in September. The unemployment rate is forecast to fall to 7.6%, while average hourly earnings are set to tick 0.2% higher.
Ultimately, the U.S. election results will draw the focus of bond traders who have yet to see a decisive winner at the end of the week.
Democratic nominee Joe Biden is displaying a widening lead over President Donald Trump, so far, but some states that are expected to tip in favor of Biden are not fully counted yet.
The earlier market volatility this week is starting to dissipate amid signs that investors will get clarity soon on the presidential election.
Read: Time to move on? Here’s one investor’s advice on what to do after the election
What did market participants say?
“Most are discounting the importance of today’s payroll number in light of the ongoing election results. But all things considered, we have a gridlock vote count. And when all is said and done, it’s still more about the economy, jobs and the virus,” said Gregory Faranello, head of U.S. rates at AmeriVet Securities.
