Treasury market bulls and bears fought to a draw this week as conflicting private-sector data on the health of the US labor market left expectations for another Federal Reserve interest-rate cut in December in limbo.
Signs of labor-market weakness — the justification for Fed rate cuts in September and October — fueled gains for Treasuries during the week. But indications of strength also drove selling. Meanwhile, the Labor Department’s landmark employment report failed to materialize for a second straight month as the US government shutdown that began Oct. 1 became the longest on record.