Against the yen JPY=, the greenback rose to two-week peaks, climbing for three straight days. The dollar was last up 0.9% at 144.52 yen.
It rose against the Chinese yuan <CNH=> to 7.1776, reaching the highest price since Dec. 13 in U.S. trade. The Australian dollar fell to its lowest price since Dec. 18.
Thursday’s ADP National Employment report showed U.S. private employers hired more workers than expected in December. Other reports showed the labor market cooling. The question for financial markets is whether Friday’s nonfarm payrolls release solidifies current futures betting on five or more rate cuts by the Fed, starting in March.
The yield on 10-year Treasury notes US10YT=RR was up 8.8 basis points to 3.995%. Its yield, which moves in the opposite direction of prices, briefly traded above 4% Wednesday, but has not maintained that level since falling below 4% in mid-December. Yields of the benchmark 10-year are up about 15 basis points over the first three trading days of the new year.
“The market is ahead of itself and is not listening to what the Fed is saying,” said Judith Raneri, a portfolio manager at Gabelli Funds.
The yield on 10-year Treasury note <US10YT=RR> was up 8.8 basis points at 3.995%. It has taken a couple halfhearted runs at clearing 4% this week but has not maintained that level since falling below it in mid-December.
What that means today for JGBs and other Asian government debt is not glaringly obvious but Japanese yields did tick higher on Thursday in a catch up with Treasuries after the extended market holiday.
In related news, Citigroup said it aimed to launch its China investment banking unit as early as the end of this year, with about 30 staff.
