U.S.10 Yield Lower – Dollar slides from 3 month high!
· Yields lower after strong payroll data puts focus on Fed
Yields lower after strong payroll data puts focus on Fed U.S. Treasury yields were lower on Friday after a strong payroll report left uncertainty about how the Federal Reserve might respond.
The benchmark 10-year yield was down 3.9 basis points at 1.4407% in midday trading. That was close to its level before the morning release of new Labor Department data showed U.S. job growth accelerated in June.
· Dollar slides from 3-month high on weak details of U.S. jobs report
The dollar slipped from a three-month high on Friday, weighed down by some of the weaker details of what was an overall strong U.S. non-farm payrolls report for June.
Despite Friday’s slide, the dollar was still poised to end the week on a positive note, with a 0.6% gain. Going into the report, the dollar traded higher on the expectation of a robust jobs number.
Data showed that U.S. nonfarm payrolls did beat expectations, increasing by 850,000 jobs last month after rising 583,000 in May. But the unemployment rate rose to 5.9% from 5.8% in May, while the closely-watched average hourly earnings, a gauge of wage inflation, rose 0.3% last month, lower than the consensus forecast for a 0.4% increase.
In mid-morning trading, the dollar index fell 0.2% to 92.421, after earlier hitting a three-month high of 92.759.
The greenback has strengthened broadly since the U.S. Federal Reserve surprised markets last month by signalling it could tighten policy earlier than expected to curb inflation.
The euro was slightly higher on the day at $1.1854, after trading lower before the jobs report.
Against the yen, the dollar slid 0.4% to 111.185 yen. On Thursday, the greenback hit a 15-month peak versus the Japanese currency.
Reference: CNBC, Reuters
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