Treasuries are modestly lower across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.232% after closing at 2.204% prior.
Treasury yields inched higher this morning upon the release of strong jobs data that may have given traders an early glimpse of what to expect from the release of tomorrow’s Non-farm Payrolls for the month of May. ADP Employment Change for May came in well above expectations at 253k versus 180k per consensus, up 79k from a downwardly revised 174k in April. Initial Jobless Claims for the week ending on May 27th came in at 248k versus an upwardly revised 235k the week prior, while Continuing Claims for the week ending on May 20th came in at 1915k, down from an upwardly revised 1924k the week prior.
The Markit US Manufacturing PMI final reading for May came in just slightly above consensus at 52.70 versus the expected 52.50 reading. The May reading for ISM Manufacturing also came in slightly above expectations at 54.90 versus 54.80 per consensus; May ISM Prices Paid slipped to 60.50 from 68.50 in April. Lastly, Construction SpendingMoM in April dropped 1.40% after an upwardly revised rise of 1.10% in March.
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Treasury yields inched higher this morning upon the release of strong jobs data that may have given traders an early glimpse of what to expect from the release of tomorrow’s Non-farm Payrolls for the month of May. ADP Employment Change for May came in well above expectations at 253k versus 180k per consensus, up 79k from a downwardly revised 174k in April. Initial Jobless Claims for the week ending on May 27th came in at 248k versus an upwardly revised 235k the week prior, while Continuing Claims for the week ending on May 20th came in at 1915k, down from an upwardly revised 1924k the week prior.
The Markit US Manufacturing PMI final reading for May came in just slightly above consensus at 52.70 versus the expected 52.50 reading. The May reading for ISM Manufacturing also came in slightly above expectations at 54.90 versus 54.80 per consensus; May ISM Prices Paid slipped to 60.50 from 68.50 in April. Lastly, Construction Spending MoM in April dropped 1.40% after an upwardly revised rise of 1.10% in March.
The curve has bear-steepened with the UST 10-Year up 2.8 bps from prior closing.