Bond Markets Closed for Columbus Day as Investors Mull Fed Policy

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Bond markets were closed Monday for Columbus Day as global stock markets and U.S. futures fell following U.S. jobs data released last week.

On Friday, the benchmark 10-year Treasury ended the session at 3.888%, up by less than a basis point after a volatile few days last week. The yield on the policy-sensitive 2-year Treasury note was at 4.312%, also gaining less than a basis point.

Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.

Global stock markets and U.S. futures retreated on Monday, as investors considered the impact of last week's labor market data on Federal Reserve policy and future interest rate hikes.

The mixture of an unexpected decline in job openings, non-farms payroll data reflecting less job growth than forecast and the unemployment rate being lower than anticipated suggested that the Federal Reserve would continue hiking interest rates.

Central bank speakers supported this narrative and continued to strike a hawkish tone in remarks made last week. Meanwhile, concern about interest rate hikes being implemented too quickly and causing a recession have been spreading among investors.

No major data releases are expected on Monday, but various Fed speakers are due to give speeches which could provide further insights into future policies and impact the bond market when it reopens Tuesday.

Correction: This article incorrectly stated that Treasurys were trading Monday. It has been updated to reflect that bond markets are closed because of the Columbus Day holiday.

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