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8 May 2015
Treasury yields drop on mixed NFP report
FXStreet (Mumbai) - The yield on the short duration and long duration US government bonds fell after the data in the US showed the economy added fewer-than-expected jobs in April, leading to a negative bi-monthly job additions.
The 10-year yield now trades 5.2 basis points lower at 2.132%, while the 30-year yield weakened 2.6 basis points to 2.882%. Meanwhile, at the short-end of the curve, the 2-year yield, which mimics the short-term interest rate expectations, fell 4.7 basis points to 0.584%.
The Treasury prices gained after the data showed added 223,000 jobs last month, compared with a forecast for a gain of 228,000 in a Bloomberg survey. However, the yields mainly came under pressure due to the downward revision of the previous month’s print from 126K to 184K, which took the net total for the last two months to -39K.
The 10-year yield now trades 5.2 basis points lower at 2.132%, while the 30-year yield weakened 2.6 basis points to 2.882%. Meanwhile, at the short-end of the curve, the 2-year yield, which mimics the short-term interest rate expectations, fell 4.7 basis points to 0.584%.
The Treasury prices gained after the data showed added 223,000 jobs last month, compared with a forecast for a gain of 228,000 in a Bloomberg survey. However, the yields mainly came under pressure due to the downward revision of the previous month’s print from 126K to 184K, which took the net total for the last two months to -39K.