Euro zone bond yields fall after US economy sheds jobs in July
TLT•German yields edge lower and head for weekly decline
Germany's 2-year bond yield DE2YT=RR, which is sensitive to European Central Bank interest rate expectations, was last down 1 basis point (bp) at 2.724%, versus 2.754% just before the data.
Germany's 10-year bond yield DE10YT=RR slipped and was last down 0.5 bps at 3.121%. Yields move inversely to prices.
The fall helped put the yield on track for its biggest weekly fall since the end of June, at 8 bps, with bonds boosted by hopes of a deal on reopening the Strait of Hormuz, even as the latest developments suggested tensions between Iran and the U.S. have yet to ease.
U.S. President Donald Trump told reporters on Thursday that he believed the war with Iran would be over soon, and oil prices flatlined on Friday.
Euro zone government bond yields fall after weak US jobs data
Euro zone government bond yields fell on Friday after key data showed the U.S. economy unexpectedly shed jobs last month, reducing the chance of rate hikes from the U.S. Federal Reserve.
The data showed that U.S. non-farm payrolls fell by 23,000 last month, compared to economists' expectations of an 80,000 increase.
June's data was revised lower to show a 20,000 rise in payrolls, down from the initial reading of a 57,000 rise.
U.S. employment data is closely watched in Europe, given the size and importance of the U.S. economy and the influence of the Fed on other central banks and global markets.
