U.S. government debt yields tumbled on Thursday, as demand for Treasurys rose over concerns that the United States and China are no closer to finalizing a comprehensive trade agreement even once a partial deal is reached.
Attention shifts to economic data on Friday, with the Labor Department expected to release a volatile batch of nonfarm payrolls numbers for the month of October.
Treasury Yields Dip
The yield on the benchmark 10-year Treasury note plunged below 1.70% on Thursday for the first time in over two weeks, according to CNBC data. The yield was last down almost 11 basis points at 1.69%, erasing much of the gains made in recent weeks.
U.S. Treasury yields declined sharply on Thursday. Yields fall when bond prices rise. | Chart: CNBC
The yield on the 2-year Treasury note also fell by almost 11 basis points to 1.52%.
Thirty-year Treasury yields declined by 10 basis points to 2.17%.
GM Strike to Impact October Nonfarm Payrolls
A strike by General Motors workers will likely cost the U.S. economy tens of thousands of jobs in October – a figure that will be reflected in the upcoming nonfarm payrolls report on Friday.
As CNBC reports, the six-week strike is projected to subtract at least 46,000 positions from the headline number, though JPMorgan forecasts the work stoppage to cost the economy at least 75,000 jobs. As a result, economists are forecasting 89,000 net jobs created for the month of October, well below the 136,000 created in September and even less than the 161,000 monthly average so far this year. Economists also expect unemployment to nudge up slightly to 3.6% from 3.5%.
While the work stoppage likely only had a temporary impact on the labor market,