The unemployment rate in the US unexpectedly rose in November, while bonds generally decreased.

the unemployment rate increased to 4.6% in November, the highest level since 2021.

This reinforces market expectations that the Federal Reserve will continue to cut US bonds in 2026, leading to a slight increase in US Treasury bond prices and generally lower yields across all maturities.

The two-year yield dropped by as much as 5 basis points to 3.45%, a record low since October 24, while the ten-year yield fell by 4 basis points to 4.14%.

The market expects the probability of an interest rate cut in January next year to be around 20%.