The disappointing October jobs report knocked the yield on the 10-year Treasury bond back below 2%. Tony Rodriguez, co-head of fixed income at Nuveen Asset Management, said better economic data will soon arrive and investors will exit the safe haven investment as quickly as they stormed in. ‘It will take some data as we go through the month on the consumer, which I think remains relatively healthy, maybe a jobs number, next month which is a little better than what we saw today to get the 10-year Treasury moving back above 2% before the end of the year,’ said Rodriguez. The U.S. created 142,000 jobs in September, far below the 200,000 jobs that were expected. The unemployment rate remained at 5.1%, but hourly wages were flat instead of the 2.4% pickup that was forecast. Rodriguez added that an interest rate hike by the Federal Reserve in December is still ‘in play’ if we see a strong jobs number for October.
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