Private sector employment in December rose by 122,000 jobs, falling short of Bloomberg’s expectation of a 139,000 gain, according to ADP.
Weekly jobless claims unexpectedly decreased, while continuing claims edged higher.
Friday’s Bureau of Labor Statistics data is anticipated to show the U.S. economy added 163,000 nonfarm jobs in December, down from 227,000 in November.
Treasury Yields:
The two-year U.S. Treasury yield declined by 2.1 basis points to 4.27%.
The 10-year yield dipped by 1 basis point, closing at 4.68%.
Federal Reserve Minutes:
Minutes from the Federal Reserve’s December meeting revealed that most Federal Open Market Committee (FOMC) members saw increased risks to inflation due to strong price growth and potential policy changes.
The FOMC cut its benchmark lending rate by 25 basis points during the meeting and indicated fewer rate cuts in the future than initially forecasted in September.
Fed Governor Christopher Waller expressed confidence in inflation returning to the 2% target over the medium term, while acknowledging stalled progress in late 2024.
The CME FedWatch tool indicates that markets widely expect the Federal Reserve to maintain interest rates at current levels in its next meeting.
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