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Treasury yields edged higher on Friday morning after the November nonfarm payrolls report showed the job market remained strong, despite a sharp rise in interest rates this year.
After the jobs print hit the market, Treasury yields pushed higher, which puts additional pressure on Treasury-related exchange-traded funds.
Profits were lower in the jobs report but reversed their direction after the news broke. In mid-morning session, the yield on the 2-year US Treasury note (US2Y) rose 11 basis points to 4.36%, the yield on the US 10-year Treasury note (US10Y), up 7 basis points to 3.60%, and the yield on the US 30-year Treasury note (US30Y) increased by 4 basis points to 3.87%.
As yields rise, Treasury and fixed-income funds fall lower. The two largest fixed income ETFs, the iShares Core US Aggregate Bond ETF (NYSEARCA:AGG) and the Vanguard Total Bond Market Index Fund (NASDAQ:BND), both slide 0.5% Soon.
Outside of both AGG and BND, another group of Treasury-based exchange-traded funds that have struggled so far include: (NASDAQ:TLT), (IEI), (IEF), (NASDAQ:SHY), (government), (VGSH), (VGIT), (SCHOOL), (SCHR), (SPTL), (TLH), and (VGLT).
Looking at the data, payroll was +263 thousand in November compared to +200 thousand predicted, in addition, the unemployment rate remained stable at 3.7%.
In broader market news, the major market averages suffered a sharp sell-off following the release of the November jobs report. stronger than the bulls had hoped.
