Treasuries Move To The Upside Following Jobs Data

(RTTNews) - After ending the previous session slightly lower, treasuries moved to the upside over the course of the trading day on Thursday.

Bond prices showed a lack of direction early in the session but climbed more firmly into positive territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 2.7 basis points to 4.106 percent.

The strength among treasuries came following the release of the Labor Department's long-delayed report on employment in the month of September.

The report showed employment in the U.S. increased by much more than expected in September, although the unemployment rate also unexpectedly crept higher.

The Labor Department said non-farm payroll employment jumped by 119,000 jobs in September after a revised dip of 4,000 jobs in August.

Economists had expected employment to rise by 50,000 jobs compared to the addition of 22,000 jobs originally reported for the previous month.

At the same time, the report said the unemployment rate crept up to 4.4 percent in September from 4.3 percent in August. The unemployment rate was expected to remain unchanged.

Treasuries rose as CME Group's FedWatch Tool suggests the chances the Federal Reserve will lower rates by another quarter point next month have risen to 39.8 percent from 30.07 percent following the report.

However, the chances of another rate cut next month are still down sharply from 98.8 percent a month ago.