Register
Login:
Share:
Email Facebook Twitter

RNS VIDEO: Reabold Resources #RBD raise £6 million and take stake in Danube Petroleum Watch here

EXCLUSIVE: HemoGenyx are creating blood cancer treatments with US$9 billion market potential


Macroeconomic News


TREASURIES OUTLOOK-U.S. yields rise as jobs data shows fall in unemployment rate, wage growth

Fri, 6th Oct 2017 20:14


* North Korea ready to test long-range missile -report

* U.S. economy loses jobs in September, but wages rise

* U.S. rate hike expectations in December intact (Repeats to additional subscribers without any changes to text)

By Gertrude Chavez-Dreyfuss

NEW YORK, Oct 6 (Reuters) - U.S. Treasury yields advanced on Friday after data showed the world's largest economy lost jobs last month due to the impact of Hurricanes Harvey and Irma, but details of the report on the unemployment rate and wage growth suggested an improving labor market.

The payrolls number did not shake expectations of an interest rate increase by the Federal Reserve at its policy meeting in December.

U.S. benchmark 10-year yields climbed to five-month peaks, while those on 30-year bonds advanced to two-month highs after the jobs data.

U.S. two-year yields, meanwhile, soared to a nine-year high.

"Despite the magnitude of the miss relative to expectations, the capital markets should look through the near-term data and view it in conjunction with the next few months of recovery," said Bill Northey, chief investment officer at U.S. Bank Wealth Management in Helena, Montana.

"An additional 25 basis-point rate hike in December remains the base case. The rates and the fed funds futures market, post-release, are consistent with our view and reading of the data," he added.

Yields, however, pared gains on a report North Korea was ready to test a long-range missile, analysts said.

Russian RIA news agency quoted a Russian lawmaker who had visited Pyongyang on Oct. 2-6 as saying the test was for a missile North Korea believes can reach the U.S. West Coast.

Reuters could not immediately verify the veracity of that report.

Outside of North Korea, investors had little appetite for Treasuries following the mixed U.S. jobs data.

U.S. nonfarm payrolls fell by 33,000 jobs last month amid a record drop in employment in the leisure and hospitality sector. But the unemployment rate fell to 4.2 percent, the lowest since February 2001.

The average hourly earnings, meanwhile, increased 12 cents in September after rising 0.2 percent in August.

Following the U.S. jobs data, the rate futures market has priced in a more than 90 percent chance of a Fed tightening in December, according to CME's FedWatch.

Market participants have recently been focusing less and less on the headline payrolls number, and instead have turned their attention to wage growth.

In late trading, the 10-year U.S. Treasury note yield was at 2.369 percent, up from Thursday's 2.35 percent. But the yield came off its highest level since May 11, above 2.4 percent.

The 30-year yield was at 2.904 percent, off its strongest level since August 1 of 2.933 percent.

U.S. two-year note yields came off a nine-year high and was last at 1.512 percent. (Reporting by Gertrude Chavez-Dreyfuss; Editing by Bernadette Baum, Grant McCool and Jonathan Oatis)



(c) Copyright Thomson Reuters 2017. Click For Restrictions - http://about.reuters.com/fulllegal.asp




Back to Macroeconomic News


Share Price, Share Chat, Stock Market news at lse.co.uk
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at lse.co.uk




Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.