SYDNEY: The Australian dollar slipped on Thursday after a surprisingly weak set of jobs numbers led investors to price in more chance of rate cuts this year, pulling bond yields lower.
Employment rose just 500 in January, when analysts had looked for a bounce of 30,000 after a steep fall in December. The jobless rate also pushed up to a two-year high of 4.1%, a clear loosening of the labour market that should help put downward pressure on inflation.
Analysts cautioned that changes to seasonal patterns in the jobs market were creating more volatility in the series, and February could well see a sizeable rebound in employment.
Still, the softening trend was enough to send three-year bond futures up 10 ticks to 96.250. Yields on 10-year notes dropped to 4.173%, having been as high as 4.311% on Wednesday.
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