Treasury yields sink as jobs report dashes hike bets
TLT•Two-year yield hits lowest since July 17
The 2-year note yield, which typically moves in step with Fed interest-rate expectations, fell 8.1 basis points to 4.164%, the lowest since July 17.
The yield on benchmark U.S. 10-year notes fell 5.91 basis points to 4.611%.
Fed funds futures traders are pricing in 40% odds of an interest-rate hike at the Fed’s September meeting, down from 55% before the data.
Treasury yields fall after weak July payrolls
U.S. Treasury yields fell sharply on Friday after data showed that employers unexpectedly shed 23,000 jobs in July, prompting traders to cut odds of a Federal Reserve interest-rate hike in September.
Economists polled by Reuters had expected employers to have added 80,000 jobs last month. The unemployment rate eased to 4.1%, defying expectations for the rate to remain steady at 4.2%.
