Unemployment in the USA Rises and Pressures Treasury Yields
According to ChainCatcher, the unemployment rate in the United States rose to 4.6% in November, reaching the highest level since 2021. This data reinforced the market perception that the Federal Reserve may intensify the cycle of interest rate cuts over the next few years, possibly until 2026.
As a reflection, American Treasury bonds recorded a slight appreciation, while yields decreased broadly. The yield on 2-year Treasuries momentarily fell by 5 basis points, to 3.45%, the lowest level since October 24. Meanwhile, the yield on 10-year securities dropped by 4 basis points, to 4.14%.
Currently, the market prices in about a 20% probability of an interest rate cut as early as January of next year.
