US 2-year Treasury yield down 6 bp (Il Sole 24 Ore Radiocor) - New York, 05 Jul - US Treasuries rose and yields fell after the payrolls report signalled the labor market had continued to cool in June.

Nonfarm payrolls increased by 206,000, above market expectations of 194,000 but less than the downwardly revised 218,000 seen in May. The unemployment rate surprisingly rose to 4.1%, its highest rate since November 2021 and above consensus of 4.0%.

The data buttressed bets the Federal Reserve will lower interest rates some time this year. According to the CME FedWatch Tool, investors are pricing in a 74% chance the Fed cuts rates in September.

At 1425 GMT the yield on the 10-year Treasury was down 4 basis points at 4.311% while the 2-year yield, which is more sensitive than longer maturities to changes in Fed policy, fell 6 basis points to 4.633%.

Jobs are key to the debate about when the Federal Reserve can start cutting interest rates and whether it will be able to engineer a soft landing - taming inflation without triggering a recession.

AAA-Sje

(RADIOCOR) 05-07-24 16:31:48 (0490) 5 NNNN