Yields on long-dated U.S. government debt remained near their highest levels in over a year on Monday, ahead of the midweek release of the December consumer-price index.
What's happening
-- The yield on the 2-year Treasury BX:TMUBMUSD02Y was at 4.394%, unchanged from Friday's closing level. Yields move in the opposite direction to prices.
-- The yield on the 10-year Treasury BX:TMUBMUSD10Y was 4.777%, up less than 1 basis point from 4.772% on Friday.
-- The yield on the 30-year Treasury BX:TMUBMUSD30Y was 4.957%, or marginally lower versus 4.962% on Friday.
What's driving markets
Ten- and 30-year Treasury yields are near their highest closing levels since Nov. 1, 2023, following Friday's bond-market selloff on data showing that the U.S. added a greater-than-expected 256,000 new jobs in December.
"Good news is bad news for markets again," said Emily Roland and Matt Miskin, co-chief investment strategists at John Hancock Investment Management.
In a note on Monday, they wrote: "U.S. economic data is coming better and that is making stocks and bond markets perform worse. While this may be a 'phase' of some sort (at the end of the day, good news means no recession, which is good news), there is some logic to it. The stronger the economy is the less likely the Fed will cut interest rates." Meanwhile, rising Treasury yields increase future borrowing costs, they said.
On Monday, fed-funds futures traders kept pulling back on their expectations for any rate cut from the Federal Reserve through the first half of this year.
The next big data release arrives on Wednesday, with the release of the December CPI report.
-Vivien Lou Chen -Steve Goldstein
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.