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Treasury Yields hit 2011 Highs Last Week

TreasuryThe yield on the benchmark 10 year Treasury note has now hit a brand new multiyear high. They have hit a level not seen since 2011.

On Friday, during North American trade hours, the benchmark 10 year note yield hit, for a short time, 3.128 percent. This was its highest rate since July 8, 2011. That is when the bond yield was at a high of 3.184 percent.

The long term 30 year bond yield also hit a new high. This rate was, briefly above, 3.2640 percent on Friday. That is its highest yield level since October 3, 2014. That is when the 30 year note was at a high of 3.276 percent.

Treasury Traders watch Employment data out of the United States

There was not a lot of economic data for Treasury or other bond traders on Friday to focus on. They were looking at data from earlier in the week, however.

On Thursday, the Labor Department said new applications for jobless benefits, in the United States, was up more than expected. However, the number of Americans on unemployment were down. It came in at its lowest level since 1973.

Initial claims for state unemployment benefits was also up. This rose 11,000 to 222,000. This data is for the week that came to a close on May 12. This data was released by the Labor Department on Thursday. Economists had expected that claims would rise to 215,000 for that week.

The new data supports that the United States’ labor market is almost at full employment. The unemployment rate now close to a 17 year low at 3.9 percent.

The Federal Reserve, has a set goal. They look to maximum employment and stable prices. The Fed had predicted, or expected, an unemployment rate of 3.8 percent by the end 2018. This will only support further rate hikes this year, as well.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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