What do bonds know? 10-year yield dips in face of strong job gains

|By:, SA News Editor

For a 2nd consecutive day, longer-duration bonds are ignoring solid headline numbers on the economy and rallying, with the 10-year yield off another four basis points to 2.58% - within a couple of ticks of its lowest level since last summer.

The yield had jumped to 2.70% in the moments following this morning's jobs report showing 288K jobs gained and the unemployment rate diving to 6.3%.

The short end of the curve is a different story, with the 2-year yield gaining two basis points to 0.43%. Taken together, it's a flatter yield curve - maybe discounting some combination of Fed tightening and slower economic growth ahead.

TLT +0.7%, TBT -1.4%

ETFs: TBT, TLT, TMV, SHY, IEF, TBF, PST, EDV, TTT, TMF, ZROZ, SBND, IEI, TLH, DLBS, TYO, DTYS, VGLT, BIL, UST, UBT, SHV, VGIT, VGSH, TLO, TBX, SCHO, GSY, SCHR, TENZ, DTYL, ITE, LBND, TYD, TYBS, SST, TUZ, DTUL, DTUS, TBZ, DFVL, FIVZ, DLBL, DFVS, TYNS