TREASURIES-US yields drop after unexpected decline in private sector jobs

BY Reuters | ECONOMIC | 12/03/25 08:29 AM EST

NEW YORK, Dec 3 (Reuters) - U.S. Treasury yields fell after data showed a surprise decrease in private sector payrolls in November, adding to worries about labor market weakness and cementing expectations of a rate cut by the Federal Reserve next month.

The benchmark 10-year yield slid 3.4 basis points (bps) to 4.0536%, from 4.0633% before the data's release.

The two-year yield, which reflects interest rate moves by the Fed, extended its fall to 4.473%. (Reporting by Gertrude Chavez-Dreyfuss Editing by Tomasz Janowski)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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