The yield on the 10-year US Treasury note rose up to four-month high of 4.2% before paring gains to 4.17% as a mixed jobs report maintained uncertainty about the magnitude of rate cuts that the Federal Reserve is expected to deliver this year. The US economy added 50,000 jobs in December, slightly below market expectations, but the unemployment rate fell sharply to 4.4%. The result aligned with the recent trend of a low-hiring low-firing labor market, consistent bets that the US central bank will pause its rate-cutting momentum next month. In the meantime, Treasury securities in the longer end of the curve received some support after President Trump ordered the Freddie Mac and the Fannie Mae to purchase $200 billion in mortgage backed securities to lower mortgage rates.
