Treasury Yields Fell After Weak Private Payrolls Report
Treasury Yields Fell After Weak Private Payrolls Report
US Treasury yields dropped Wednesday when a report from ADP showed private employers cut more jobs in November than they added. That news raised odds of a Federal Reserve rate cut next week, sending investors into bonds and pushing yields lower. Weak data solidified rate cut expectations.
What the ADP Data Showed
The ADP report caught markets off guard with its signal of a slowing job market. MarketScreener pointed out how this surprise decline drove Treasury yields down right away. It boosted expectations for Fed action amid other positive signs in the economy.
Yield Numbers and Bond Basics
The 10-year Treasury yield slipped to 4.06% from 4.09% late Tuesday. Bond yields and prices move in opposite directions—when demand for bonds picks up, prices climb and yields fall. Here, bets on lower Fed rates pulled buyers in, since future bond payments look better compared to expected short-term rates. Soft jobs data added to confidence in further rate reductions.
Los Angeles Times covered how this tied into broader market moves: stocks climbed near records as lower yields make investments more attractive, while job weakness argued for Fed cuts to help the economy. A separate Institute for Supply Management report on services showed stronger growth than expected, with prices rising at the slowest pace since April—easing inflation worries that might block rate cuts. LA Times full report.
Key Drivers Behind the Decline
- Job slowdown: ADP data pointed to net job cuts, signaling economic cooling.
- Fed rate bets: Markets now see a good chance of the third cut this year next week.
- Bond market reaction: More bond buying on rate cut hopes drove prices up, yields down.
- Offsetting data: Stronger services activity and slower price gains kept the mood from turning too gloomy.
Overall, these factors shaped market moves where weaker jobs data lowers rate outlooks, bonds rally, and yields ease.
Sebastyen
Sebastyen Wolf is our Editor-in-Chief. He is an analyst and entrepreneur with experience working alongside early-stage founders, launching online ventures, and studying the data patterns that shape successful companies. A fan of Shark Tank since Season 1, he now focuses on translating the show’s most valuable insights into clear, practical takeaways for readers.
