ANL 11.12 Increased By ▲ 0.53 (5%)
ASC 9.65 Increased By ▲ 0.18 (1.9%)
ASL 11.26 Increased By ▲ 0.31 (2.83%)
AVN 74.41 Increased By ▲ 5.21 (7.53%)
BOP 5.77 Decreased By ▼ -0.09 (-1.54%)
CNERGY 5.28 Increased By ▲ 0.14 (2.72%)
FFL 6.91 Increased By ▲ 0.15 (2.22%)
FNEL 6.05 Increased By ▲ 0.14 (2.37%)
GGGL 11.94 Increased By ▲ 0.76 (6.8%)
GGL 16.13 Increased By ▲ 1.13 (7.53%)
GTECH 9.11 Increased By ▲ 0.42 (4.83%)
HUMNL 6.54 Increased By ▲ 0.24 (3.81%)
KEL 2.52 Increased By ▲ 0.03 (1.2%)
KOSM 3.01 Increased By ▲ 0.09 (3.08%)
MLCF 26.30 Decreased By ▼ -0.20 (-0.75%)
PACE 3.04 Increased By ▲ 0.04 (1.33%)
PIBTL 5.99 Increased By ▲ 0.14 (2.39%)
PRL 16.60 Increased By ▲ 0.80 (5.06%)
PTC 7.50 Increased By ▲ 0.15 (2.04%)
SILK 1.37 No Change ▼ 0.00 (0%)
SNGP 25.80 Decreased By ▼ -0.10 (-0.39%)
TELE 10.75 Increased By ▲ 0.53 (5.19%)
TPL 9.30 Increased By ▲ 0.60 (6.9%)
TPLP 16.65 Increased By ▲ 1.27 (8.26%)
TREET 28.90 Increased By ▲ 0.80 (2.85%)
TRG 78.40 Increased By ▲ 1.82 (2.38%)
UNITY 22.21 Increased By ▲ 0.72 (3.35%)
WAVES 12.95 Increased By ▲ 0.05 (0.39%)
WTL 1.54 Increased By ▲ 0.06 (4.05%)
YOUW 5.10 Increased By ▲ 0.31 (6.47%)
BR100 4,164 Increased By 7.5 (0.18%)
BR30 14,902 Increased By 371.2 (2.55%)
KSE100 42,013 Increased By 62.3 (0.15%)
KSE30 15,913 Increased By 10.4 (0.07%)
Markets

Yields rise on strong June jobs data

  • The benchmark 10-year yield was last up 1.9 basis points at 0.7006%.
  • I think the Fed will continue to kind of keep rates low. But the key is not the level of rates. In my mind, the key is the slope of the curve. As long as that curve slope is positive,
02 Jul, 2020

CHICAGO: US Treasury yields rose on Thursday after better-than-expected June jobs data boosted hopes that the economy was bouncing back from the coronavirus outbreak, although a surge in virus cases continues to threaten the recovery.

The benchmark 10-year yield was last up 1.9 basis points at 0.7006%.

Justin Hoogendoorn, head of fixed income strategic analytics at Piper Sandler in Chicago, said the reaction in the 10-year note was "muted," given the positive news, and could be due to Thursday's early market close ahead of the Fourth of July holiday.

The US Labor Department reported that nonfarm payrolls increased by 4.8 million jobs in June, surpassing a forecast of 3 million by economists in a Reuters poll. That was the most since the government started keeping records in 1939 and it followed the addition of nearly 2.7 million jobs in May.

Even as the economy perks up, Hoogendoorn said the Federal Reserve will still be keeping a watchful eye on interest rates.

"I think the Fed will continue to kind of keep rates low. But the key is not the level of rates. In my mind, the key is the slope of the curve. As long as that curve slope is positive, I think that shows really good things to come," he said.

Meanwhile, new cases of COVID-19, the illness caused by the coronavirus, shot up by nearly 50,000 in the United States on Wednesday, according to a Reuters tally, marking the biggest one-day spike since the start of the pandemic.

The two-year US Treasury yield, which typically moves in step with interest rate expectations, was up less than a basis point at 0.1664%.

A closely watched part of the US Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, which is viewed as an indicator of economic expectations, was at 53 basis points, about 2 basis points higher than at Wednesday's close.

Comments

Comments are closed.