Eurozone bond yields recover after U.S. nonfarm payrolls data rose more than expected

Eurozone government bond yields rallied in line with U.S. Treasury yields on Saturday (Dec. 3) after the U.S. released higher-than-expected nonfarm payroll employment figures. Hourly worker wages were also higher than expected. This could be a factor the Federal Reserve (Fed) will consider in its next interest rate decision. The yield on 10-year German government bonds, the benchmark for eurozone government bonds, rose 0.05% to 1.872%, while the yield on two-year bonds, which are more sensitive to interest rate expectations, rose 0.08% to 2.12%.

Nonfarm payrolls figures were the last major economic data before the Fed’s final monetary policy meeting of the year on Dec. 13-14. The U.S. Department of Labor reported that nonfarm payrolls increased by 263,000 in November. The unemployment rate remained stable at 3.7%.

The average hourly earnings of workers increased 0.6% month-over-month and 5.1% year-over-year. The hourly earnings figures are the data that the Fed uses as an indicator of inflation.

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