(Bloomberg) -- The U.S. five-year note's yield rose to the highest level since January 2020, after mixed December employment data reinforced expectations for at least three Federal Reserve rate hikes this year.
The yields rose more than 4 basis points to 1.5135%, extending its increase this week to 24 basis points, on track for its biggest weekly increase since September 2019. The difference between five-year and 30-year bond yields narrowed below 60 basis points for the first time since mid-December.
U.S. employers added fewer jobs in December than forecast, while the jobless rate fell below 4% and wages jumped.
“This is an inflation story and the curve is responding by bear steepening,” said Subadra Rajappa, head of U.S. rates strategy at Societe Generale. “The Fed likely ignores the headline miss in the context of the unemployment rate declining to 3.9% and eye-popping wage increase.”
©2022 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
