US equities and government bonds rally after jobs data top forecasts

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Long-dated US government debt rallied on Friday and travel stocks jumped following better than expected jobs data and encouraging results from Pfizer for its antiviral Covid-19 pill.

The yield on the benchmark 10-year Treasury note dropped 0.07 percentage points to 1.46 per cent, pointing to a rise in prices for the second day in a row. Short-term bonds traded in a tighter range, with the two-year yield down only 0.03 percentage points to 0.40 per cent.

The moves in fixed-income markets came after a report showed employers in the world’s largest economy added 531,000 jobs in October, beating the forecast of Wall Street economists of 450,000 hires.

There were “notable job gains” in the pandemic-sensitive leisure and hospitality sectors, the US Bureau of Labor Statistics said, while the number of people who said they were not looking for work because of Covid-19 declined on the prior month.

Moves in US Treasuries rippled into other big…

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