US Treasury yields fell on Monday after unexpectedly strong jobs data raised the likelihood that the Federal Reserve will raise interest rates significantly.
return on standard 10-year treasury bonds It fell 4 basis points to about 2.7993% while the return on 30 year treasury bonds It fell by 2 basis points to 3.0383%. Yield moves inversely with prices, and the basis point is 0.01%.
It comes next Economic data published on Friday Show that US job growth blew previous expectations in July.
The data showed that nonfarm payrolls rose 528,000 last month and beat Dow Jones expectations of 258,000. Meanwhile, wage growth picked up, with median incomes up 0.5% for the month and 5.2% from a year ago.
The stronger-than-expected report boosted the possibility of a massive interest rate hike by the Federal Reserve and showed that the US is not likely to be in a recession. Analysts anticipation The Fed will consider raising the interest rate by 75 basis points at its upcoming meetings to bring high inflation back to its target.
Market participants are likely to closely watch inflation data due later in the week for more clues on the US central bank’s rate path.
On Monday, the US Treasury will auction $54 billion in 13-week notes and $42 billion in 26-week notes.
CNBC’s Carmen Renick and Silvia Amaro contributed to this report.
“Amateur organizer. Wannabe beer evangelist. General web fan. Certified internet ninja. Avid reader.”
More Stories
Bitcoin Fees Near Yearly Low as Bitcoin Price Hits $70K
Court ruling worries developers eyeing older Florida condos: NPR
Why Ethereum and BNB Are Ready to Recover as Bullish Rallies Surge