Treasury yields trade flat in Asia despite strong US jobs report

Treasury yields in the US trade flat in Asia as the massive yield differential with European and Japanese bond yields underpin demand for the treasuries.

At the time of writing, the yield on the 10-yr Treasury note was trading flat around 1.365%. The 2-yr yield, which mimics short-term rate hike bets, was trading just one basis point higher at 0.621%.

The 10-yr yield clocked a high of 1.44% on Friday after the data in the US showed the economy added 287,000 jobs last month, well above median forecasts. The data was good, but was not strong enough to convince markets that Fed would rates this year.

Moreover, the yields in the US are well above zero, while those in Japan and Germany are falling deep into the negative territory each passing day. Hence, demand for treasuries is high, despite the uptick in the stock markets.