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US Treasury yields fall after weak jobs data
Markets pared expectations for a September Fed hike to 30% from 58% after July nonfarm payrolls fell 23K and prior months were revised down.
US Treasury yields fell across the curve on Friday as investors weighed a weak US jobs report alongside growing speculation that an Iran-Oman deal related to shipping in the Strait of Hormuz could be nearing completion, easing pressure in energy markets.
According to FXStreet, WTI crude extended losses, dropping nearly 1% to $77.50, while money markets reduced the chance of a September Federal Reserve rate hike to 30% from 58% the prior day. The probability of a steady rate decision rose to 70%.
The US 10-year Treasury note yield slipped to 4.651%, down nearly three basis points, reflecting expectations that a quicker resolution to the US conflict could reduce the urgency for Fed action.
FXStreet also cited July nonfarm payrolls declining by 23K jobs versus expectations for an 80K gain, with revisions cutting May and June estimates by 103K jobs in total. The unemployment rate edged down to 4.1% from 4.2%, and the US Dollar Index fell 0.42% to 99.54, with next week’s focus shifting to inflation releases, jobless claims, and the University of Michigan consumer sentiment survey.
Latest closeWTI crude $78.07 ▲3.8%|Dollar index 99.98 ▲0.3%