October 18, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

10-year Treasury futures prices fall to start the week; bond markets closed

10-year Treasury futures prices fell to start the week, with investors weighing up whether the Federal Reserve will soon look to taper its asset purchases.

U.S. bond markets were closed Monday due to the Columbus Day holiday. But the 10-year U.S. Treasury future price fell on Monday morning, trading around $130.9 early Monday.

September’s jobs report, released Friday, showed that nonfarm payrolls rose by 194,000 last month. This was well below a forecast of 500,000 new payrolls in September.

The weaker jobs report, however, did little to assuage investor concerns that the Fed will soon look to pull back its bond buying program. Employment data is one indicator being used by the central bank to guide its timeline on tightening monetary policy.

In fact, the 10-year yield rose above the 1.6% following the release of the report, hitting its highest level since June 4.

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Arnab Das, global market strategist at Invesco, told CNBC’s “Squawk Box Europe” on Monday that he believed the Fed would go ahead with tapering its asset purchases, though he said that weaker sets of data like the latest jobs report would sow some doubt as to how fast it would do so.

“I think the challenge here for the Fed, and others, is to normalize what has not been a normal economic cycle because of the pandemic and the lockdowns,” Das said.

There are no major economic data releases scheduled for Monday. On international markets, yields on both German and U.K. sovereign bonds were slightly higher on Monday morning.

Instead, investor attention this week will be focused on August’s Job Openings and Labor Turnover Survey, due out on Tuesday. Core inflation data for September and minutes from the Fed’s latest meeting are then set to come out on Wednesday.

Correction: This story has been updated to add that markets were closed Monday due to the Columbus Day holiday.

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