Treasuries are slightly higher across the curve this morning from yesterday’s close. The UST10-Year yield is currently at 2.819% after closing at 2.830% prior.
Treasuries rose overnight as investors digested the economic impact of the first round of tariffs that took effect between U.S. and China last night. Gains extended after a mixed employment data was released this morning for the month of June. Nonfarm Payrolls rose above expectations at 213k versus 195k per consensus, and the May data showed a solid upward revision from 223k to 244k. Private Payrolls also rose above expectations at 202k versus 190k per consensus, and its prior mark was also revised upwardly from 218k to 239k. Furthermore, Manufacturing Payrolls also exceeded expectations which rose 36k versus a surveyed 15k increase, and its previous mark was also slightly revised higher from 18k to 19k.
Unemployment Rate rose 4.00% month-over-month from 3.80% prior; consensus called for the index to remain at 3.80% in June. Underemployment Rate also reflected a slight increase from 7.60% prior to 7.80% in June. The Average Hourly Earnings, which was expected to gain 0.30% in June, rose just 0.20% month-over-month after increasing 0.30% in May. Average Hourly EarningsYoY remained unchanged from prior at 2.70% although it was expected to increase to 2.80% per consensus. Lastly, we received the Trade Balance for May which narrowed to $43.10 Billion from a revised $46.10 Billion deficit the month prior.
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Treasuries rose overnight as investors digested the economic impact of the first round of tariffs that took effect between U.S. and China last night. Gains extended after a mixed employment data was released this morning for the month of June. Nonfarm Payrolls rose above expectations at 213k versus 195k per consensus, and the May data showed a solid upward revision from 223k to 244k. Private Payrolls also rose above expectations at 202k versus 190k per consensus, and its prior mark was also revised upwardly from 218k to 239k. Furthermore, Manufacturing Payrolls also exceeded expectations which rose 36k versus a surveyed 15k increase, and its previous mark was also slightly revised higher from 18k to 19k.
Unemployment Rate rose 4.00% month-over-month from 3.80% prior; consensus called for the index to remain at 3.80% in June. Underemployment Rate also reflected a slight increase from 7.60% prior to 7.80% in June. The Average Hourly Earnings, which was expected to gain 0.30% in June, rose just 0.20% month-over-month after increasing 0.30% in May. Average Hourly Earnings YoY remained unchanged from prior at 2.70% although it was expected to increase to 2.80% per consensus. Lastly, we received the Trade Balance for May which narrowed to $43.10 Billion from a revised $46.10 Billion deficit the month prior.
The curve has bull-flattened with the UST 10-Year yield down 1.1 bps from prior closing.
Have A Nice Weekend!