NEW YORK (dpa-AFX) – The prices of US government bonds increased their losses during trading on Friday. A strong jobs report put pressure on. The futures contract for ten-year Treasuries (T-Note Future) recently fell by 1.16 percent to 119.34 points. In contrast, the yield on ten-year government bonds rose to 2.84 percent.
The labor market report for July clearly exceeded expectations. The economy created far more jobs than forecast. The unemployment rate fell to 3.5 percent, returning to the level it was before the corona pandemic. In addition, wage growth continued to accelerate, while analysts had expected a slowdown.
The pressure on the US Federal Reserve (Fed) to raise interest rates significantly remains high. “At the press conference after the July meeting, Fed Chairman Powell explicitly referred to the two labor market reports due until the September meeting,” Commerzbank said. A cooldown that could reduce inflationary pressure did not occur, which is why the calls for a further interest rate step of 0.75 percentage points, according to Commerzbank, are being backed by the Fed’s decision-making body./ck/he