Markets & Finance

Treasury Prices Surge After Weak Payrolls


From Standard & Poor's Equity Research

MARKETSCOPE : Treasury bond prices surged Friday after news that Nonfarm Payrolls rose less than expected.

The 10-year Treasurys climbed 08/32 to 100-15/32 for yield of 5.070%. The 2-year note rose 01/32 to 99-26/32 for yield of 4.983, while the 30 year bond climbed 15/32 to 90-01/32 for yield of 5.164.

News hit that Nonfarm Payrolls rose a less than expected 75,000 in May after rising a revised 126,000 in April and 175,000 in March. The unemployment rate fell to 4.6% from 4.7%.

Market players also awaited a 10 am Eastern Daylight Time report on April Factory Orders.

Investors continue wondering whether the Federal Open Market Committee will raise rates at its June 28 and 29 meeting. Fed funds futures indicate that markets perceive a 72% chance the FOMC will continue its credit tightening cycle. The Fed has raised rates 16 times consecutively since 2004 in an effort to control inflation.


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