US yields hit new highs ahead of jobs report

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U.S. Treasury yields rose in early trading on Thursday as investors anticipated a strong jobs report that could encourage more aggressive Fed tightening. Federal in its fight against inflation.

* Yields on US government bonds – which move inversely with prices – have been rising after Federal Reserve Chairman Jerome Powell indicated last week that the central bank will continue to raise rates interest rates to combat inflation, even if that causes hardship for households and businesses.

* Benchmark 10-year US Treasury yields rose 5 basis points to a more than two-month high of 3.26% on Thursday after the release of a report showing weekly jobless claims at The United States fell again, confirming the rigidity of labor conditions.

* On the short side, two-year note yields rose to a new 15-year high of 3.513%, before trading around 3.5%.

* The moves precede the release of the Non-Farm Payrolls report due out on Friday, which is likely to reinforce expectations that the Federal Reserve will keep raising interest rates.

* “I think the consensus is that all of the jobs numbers this week are going to be pretty strong, and people are probably getting a little ahead of themselves,” said Thomas Hayes, president and managing member of New York-based Great Hill Capital. York.

* Federal Reserve fund futures traders estimate a 73% chance that the Fed will raise interest rates by 75 basis points at its next policy meeting on September 20-21.

* Hayes said he expects Treasury yields to continue to rise in the coming days leading up to the Consumer Price Index (CPI) inflation report, due on September 13.

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* The part of the US Treasury curve that measures the spread between 2-year and 10-year bond yields remained inverted but fell to -24.7 basis points.

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