FX.co ★ US 10-Year Treasury Yield Edges Up

The yield on 10-year US Treasuries increased to 4.18% on Thursday, as investors responded to indications of a robust labor market, alleviating concerns about a pronounced economic downturn. In December, US companies announced 35,553 layoffs, marking the lowest figure in 17 months and a substantial decrease from November's elevated numbers. This trend suggests that employers might be reducing job cuts and potentially preparing for increased hiring. The sharp decline in layoff announcements, coupled with the highest planned hiring levels for December in several years, paints a less alarming picture of labor market conditions. Additionally, weekly jobless claims rose less than anticipated. As the comprehensive US payrolls report is set to be released on Friday, traders are closely monitoring how the employment data will shape expectations for Federal Reserve interest rate cuts this year, with the market currently anticipating at least two quarter-point reductions. Beyond labor statistics, geopolitical concerns, such as the US's efforts to increase its influence in Greenland and ongoing developments in Venezuela, remain key points of interest for investors.