U.S. Treasury yields and the dollar experienced significant volatility after December’s job additions fell short of expectations, though the unemployment rate declined, a situation that may lead the Federal Reserve to hold steady for some time. Employment rose by 50,000 in December, below the average forecast of 73,000 from a survey. November’s figure was revised down from 64,000 to 56,000. The unemployment rate fell to 4.4% from a downwardly revised 4.5%, slightly better than expected. This was the final jobs report before the Fed’s interest rate decision on January 28. Yields and the dollar jumped following the release but have since pared some gains. The 10-year U.S. Treasury yield was 4.173%, and the 2-year yield was 3.509%. The dollar index rose 0.1%.
