By Dhirendra Tripathi
Investing.com – The yield on the 10-year U.S. Treasury note United States 10-Year rose 2 basis points Wednesday to trade above 1.55% ahead of employment numbers for September, amid rising concerns over energy prices, inflation and U.S. fiscal brinkmanship.
According to estimates, private companies in the U.S. added 428K jobs last month, more than August’s 374K. The August number had come well below estimates.
The 10-year U.S. Treasury yield had climbed back above 1.56% early on Wednesday, highest since June, amid concerns over an increasingly broad rise in commodity prices. Record prices of crude, natural gas and coal as well as metals have prompted more and more central banks to raise interest rates, New Zealand and Iceland both raising their key rates on Wednesday.
All eyes are now on the Fed to begin tapering asset purchases, something that most say is likely to happen next month. A hike in rates is expected only late next year, though.
The yield on the 30-year paper United States 30-Year jumped nearly 2 basis points to 2.11%. Yields move inversely to prices and 1 basis point is one hundredth of a percent.
The United States 5-year note yield United States 5-Year, more sensitive to expectations of short-term interest rate changes, rose 1 bp to 0.98%. It traded around 0.35% at the start of the year.