Treasury yields remain near record lows as bond traders wait for monthly jobs report

Treasurys sit tight ahead of unemployment report

NEW YORK — Most Treasurys inched slightly higher Thursday, as investors waited for the government’s monthly jobs report.

The yield on the two-year note continued to drop, plumbing new lows along the way. It sat at a record-low 0.36 percent in late afternoon trading, down from 0.39 percent the day before.

On Wednesday, Treasury rates dropped to their lowest levels since the financial crisis. News that private employers shed 39,000 jobs last month added weight to expectations the Federal Reserve will begin a new bond-buying program and push long-term borrowing costs even lower.

Another test of that view comes Friday, when the Labor Department releases its employment report. Wall Street expects to see the unemployment rate rise to 9.7 percent from 9.6 percent.

The 10-year yield reached 2.38 percent, down from 2.39 percent late Wednesday. The note due in 2020 rose 9.3 cents to $102.09.

The 30-year security was the only long-term Treasury to lose ground. The long bond fell 78 cents to $102.87. That pushed the yield to 3.71 percent from 3.66 percent the day before. Bond yields and prices move in opposite directions.

The Treasury also announced the details of its bond auctions next week, expected to raise $66 billion to finance the federal budget. It plans on selling $32 billion in three-year notes, $21 billion in 10-year notes and $13 billion in 30-year bonds.

In other trading, the three-month T-bill paid a 0.11 yield, at a discount of 0.12 percent.