FXStreet (Mumbai) – The yields on the short duration and long duration treasuries in the US rose after a labor department report in the US showed the economy added more jobs than expected, building a case for a rate hike this year.
Short-end yields rise on increased prospects of a rate hike
The 2-year yield, which is sensitive to short-term interest rate expectations rose 0.825% from the pre-data level of 0.68%.
Meanwhile, the yield on the benchmark 10-year Treasury note rose to a high of 2.442% from the pre-data level of 2.355%. The 30-year yield rose to 3.136% from pre-data level of 3.058%.
The treasury prices fell, pushing yields higher after labor department data released in the US showed the US economy added 280K jobs in May, which is significantly higher than the consensus estimate of 225K.
The average hourly earnings rose to 0.3% month-on-month in May, compared to 0.1% rise seen in April. Labor force participation rate ticked higher to 62.95, along with a rise in the unemployment rate to 5.5%.
(Market News Provided by FXstreet)