The Treasury rally is heating up.
The yield on the 10-year Treasury note dropped after new data showed U.S. hiring slowed unexpectedly in November.
Government bonds have been on a tear lately, sending yields to the lowest level since August in the prior session. It’s a sharp reversal from the autumn, when a punishing bond rout pushed yields toward 5% for the first time in 16 years. Now, some investors are wondering: Have bond yields peaked?
Signs that the jobs market is cooling have led investors to ramp up bets that the Federal Reserve will slash interest rates next year. Next, investors will be parsing the monthly employment report due Friday.
In morning market action:
U.S. stocks rose, with all three major indexes notching gains.
The Russell 2000 index of small stocks outperformed its peers.
Treasury yields dropped. The 10-year yield was recently at 4.123%, down slightly from 4.171% late yesterday.
The bitcoin rally pressed on. The cryptocurrency topped $44,000, reaching its highest levels since early 2022, on renewed hopes that exchange-traded funds based on actual bitcoin are coming soon.
British American Tobacco shares fell about 8% in London, dragging down the FTSE 100 index, after the company said it would take a $31.5 billion impairment charge. Most other European indexes rose.
Asian stocks rose. Japan’s Nikkei 225 index climbed 2%. The CSI 300 in mainland China and Hong Kong’s Hang Seng Index advanced.