The 10-year Treasury traded around flat on Monday as investors parsed the latest manufacturing data.
The yield on the benchmark U.S. 10-year Treasury slid under 1 basis point to 4.19%. Meanwhile, the 2-year Treasury yield rose 2 basis points to 4.194%. On Friday, the 10-year Treasury yield had fallen to its lowest levels since late October.
One basis point equals 0.01% and yields and prices move in opposite directions.
Investors are keenly anticipating labor data that will offer insights about the strength of the U.S. economy.
First, the Job Openings and Labor Turnover Survey for October will be published on Wednesday and provide estimates for the number of job openings, hires, layoffs and quits.
The November jobs report will be published on Friday and is expected to show that the U.S. economy added 200,000 jobs last month, per an estimate from Dow Jones, up from 12,000 jobs in October. The unemployment rate is expected to land at 4.1%, according to Dow Jones, the same level where it stood the prior month.
The jobs report is important for investors as it will be the last major look at the labor market before the Fed’s Dec. 17-18 meeting, where it will decide on how much to cut interest rates.
On Monday morning, the latest ISM Manufacturing PMI indicated that the U.S. manufacturing sector improved in November, although it still remained in contraction. The ISM’s manufacturing index rose to 48.4 last month, better than the Dow Jones estimate for 47.5. A PMI reading above 50% indicates an expanding manufacturing economy while below 50% suggests a decline.
Several central bank officials are expected to speak this week, including Fed Governor Christopher Waller on Monday and Fed Chair Jerome Powell on Wednesday. Investors will monitor these engagements for hints on interest rate policy.