Yields jump after stronger than expected jobs gains

Author of the article: NEW YORK — U.S. Treasury yields jumped and a key part of the yield curve inverted further after data on Friday showed that employers added more jobs than expected to their payrolls in June. Nonfarm payrolls increased by 372,000 jobs last month, according to the Labor Department’s closely watched employment report.…
Yields jump after stronger than expected jobs gains

Author of the article:

NEW YORK — U.S. Treasury yields jumped and

a key part of the yield curve inverted further after data on

Friday showed that employers added more jobs than expected to

their payrolls in June.

Nonfarm payrolls increased by 372,000 jobs last month,

according to the Labor Department’s closely watched employment

report. Economists polled by Reuters had forecast 268,000 jobs

added last month.

Benchmark 10-year yields rose to 3.08%, from around 2.99%

before the data. Two-year yields jumped to 3.13%, from around

3.00%.

The two-year, 10-year part of the Treasury yield curve was

at minus 7 basis points, compared with around minus 3 basis

points before the jobs report. It inverted on Tuesday for the

first time in three weeks. An inversion in this part of the

curve is seen as a reliable indicator that a recession will

follow in one to two years.

July 8 Friday 8:42AM New York / 1242 GMT

Price Current Net

Yield % Change

(bps)

Three-month bills 1.94 1.9762 0.028

Six-month bills 2.5875 2.6574 0.051

Two-year note 99-197/256 3.1212 0.080

Three-year note 99-56/256 3.1558 0.091

Five-year note 100-128/256 3.1404 0.086

Seven-year note 100-144/256 3.1593 0.078

10-year note 98-64/256 3.0822 0.074

20-year bond 96-48/256 3.5183 0.059

30-year bond 92-236/256 3.247 0.051

DOLLAR SWAP SPREADS

Last (bps) Net

Change

(bps)

U.S. 2-year dollar swap 27.50 1.00

spread

U.S. 3-year dollar swap 10.25 1.00

spread

U.S. 5-year dollar swap 3.00 0.00

spread

U.S. 10-year dollar swap 8.50 -0.25

spread

U.S. 30-year dollar swap -25.50 0.50

spread

(Editing by Mark Heinrich)

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