January 3, 2024
United States:
Treasury 10-Year Yield Eyes 4% as Bonds Dip Ahead of US Data
The US Treasury market extended losses for a fourth day, putting the 10-year yield near 4%, reflecting investor caution ahead of the release of fresh economic data and the Federal Reserve’s meeting minutes.
Yields rose about four basis points across the curve, sending the benchmark 10-year rate to 3.98%, the highest since Dec. 14. UK bonds also edged lower, while German peers erased an earlier drop to trade little changed.
Europe:
German Labor Market Remains Resilient Despite Growth Struggles
German unemployment increased less than expected in December — a sign that companies are hesitant to cut hard-to-come-by staff even during a recession.
Joblessness rose by just 5,000 at the end of last year, compared with an estimate in a Bloomberg survey for a 20,000 gain. The unemployment rate ticked up to 5.9% from a revised 5.8%.
Asia:
India’s Factory Activity Eases While Still Outpacing Peers
Manufacturing activity in India moderated in December, while still outperforming Asian peers as new orders and business confidence continued to grow.
The HSBC India manufacturing purchasing managers’ index came in at 54.9 last month, down from 56 in November, the bank said Wednesday. The December reading was the weakest in 18 months, as the pace of factory orders and output lost momentum. Readings above 50 indicate expansion.
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