Arabic version: ارتفاع عوائد سندات الخزانة قبيل تقرير الوظائف لشهر سبتمبر

According to Cnbc, Treasury yields wavered after lighter-than-expected U.S. inflation data for August, with traders turning their attention to the September jobs report due Friday at 8:30 a.m. ET. The 10-year Treasury yield rose more than 4 basis points to 5.298%, recovering from an earlier pullback and trading near 2007 highs.

The 2-year Treasury note yield was little changed at 4.891%. The 30-year Treasury bond yield climbed nearly 5 basis points to 5.642%, around its highest level since 2002. One basis point equals 0.01%, and bond yields move in the opposite direction of prices.

The Commerce Department reported that the personal consumption expenditures price index increased a seasonally adjusted 0.3% in August, leaving the 12-month gain at 3.4%. Economists surveyed by Dow Jones had expected increases of 0.3% for the month and 3.7% from a year earlier.

Excluding food and energy, PCE rose 0.2% in August and the annual core reading was 3%, compared with forecasts for 0.3% and 3.3%. Christopher Rupkey, chief economist at FWDBONDS, said the data showed inflation was not running as hot as markets had expected, prompting investors to reconsider how many Federal Reserve rate hikes may be needed.

Following the release, traders reduced the implied chance of a quarter-point rate increase in October to around 37%, after it had exceeded 80% at one point during the month, according to the CME Group’s FedWatch tool. Economists expect 84,000 jobs were added in September. A stronger-than-expected result, after Wednesday’s ADP private payrolls report, could push yields higher.