- U.S. government debt yields recovered on Friday as bond prices fell.
- The benchmark yield nosedived below 1.70% on Thursday, reaching its lowest levels since Oct. 15.
- The U.S. manufacturing sector is in a deep recession, according to at least one indicator.
U.S. government debt yields rose Friday, as bond prices fell after stronger than expected jobs data offset another dismal manufacturing report from the Institute for Supply Management (ISM).
Treasury Yields Recover
The yield on the benchmark 10-year Treasury note peaked at 1.75%, according to CNBC data, before paring gains later in the afternoon. It was last spotted at 1.719% for a gain of almost 3 basis points.
U.S. Treasury yields recover on Friday as bond prices fall. | Chart: CNBC
Treasurys with shorter maturities also rallied in the final session of the week. The yield on the 2-year Treasury note reached a session high of 1.58%; it was last spotted at 1.556% for a gain of 3 basis points.
The yield curve plunged more than 10 basis points on Thursday over concerns that the United States and China were heading towards a stalemate on trade. A dismal outlook on nonfarm payrolls that didn’t pan out also weighed on investor sentiment prior to Friday’s session.
U.S. Manufacturing Extends Slide
Output at U.S. factories fell in October for a third straight month, as the prospect of a ‘phase one’ trade agreement with China failed to impress purchasing managers.
ISM’s manufacturing purchasing managers’ index (PMI) improved to 48.3 in October from 47.8 the month before. Despite the modest uptick, a PMI reading below 50 denotes contraction in economic activity.
Timothy Fiore, the Chair of ISM’s manufacturing business survey committee,