ADP Report Boosts Bond Yields and Eyes on Nonfarm Payrolls

  • 10-year Treasury yield rises after better-than-expected ADP jobs report
  • Yield on the 2-year Treasury increases by 3.4 basis points to 3.653%
  • Yield on the 10-year Treasury jumps 5.9 basis points to 3.801%
  • Yield on the 30-year Treasury advances 6.7 basis points to 4.147%
  • ADP survey shows private sector added 143,000 jobs in September
  • Employment gains for sixth consecutive month below 200,000
  • Nonfarm payrolls report to be released on Friday
  • Treasury yields fell on Tuesday due to Middle East conflict concerns
  • Oil prices rise amid Israel/Iran tensions and port strike fears
  • Dockworkers’ strike could impact US economy by $4 billion daily

The yield on the 10-year Treasury bond rose after a better-than-expected ADP National Employment Report showed U.S. businesses added 143,000 jobs in September, surpassing economists’ median forecast of 128,000. This marks the sixth consecutive month with employment gains below 200,000. Traders will be watching the upcoming nonfarm payrolls report for further guidance on Federal Reserve’s interest-rate cuts. Meanwhile, concerns over Middle East conflict and a potential prolonged U.S. port strike could impact the economy.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Treasury yields and their relation to private-sector job creation, the ADP survey, and potential impacts on the Federal Reserve’s interest rate decisions. It also discusses factors affecting Treasury yields such as Middle East tensions and a possible port strike. While it does not contain any significant issues like misleading information or personal perspective presented as fact, it lacks some context and background information that could make it more informative for readers unfamiliar with the topic.
Noise Level: 3
Noise Justification: The article provides relevant information about Treasury yields and job creation in the US, but it lacks in-depth analysis or actionable insights. It also briefly touches on potential inflationary pressures from a port strike, but does not explore the topic further.
Public Companies: Jefferies (JEF)
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses changes in Treasury yields and their relation to job creation, interest rates, and the potential impact of a port strike on financial markets. It also mentions inflationary pressures due to oil prices and the Middle East conflict.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text and it’s not the main topic.
Move Size: No market move size mentioned.
Sector: All
Direction: Up
Magnitude: Large
Affected Instruments: Bonds

Reported publicly: www.marketwatch.com