NEW YORK — U.S. Treasury yields rose to
two-week highs on Friday after data showed the world’s largest
economy created more jobs than expected last month, putting the
Federal Reserve on track to raise interest rates by half a
percentage point a few more times this year.
U.S. yields from one-year notes to 30-year bonds all climbed
to two-week peaks in the wake of the better-than-expected
nonfarm payrolls report.
Data showed U.S. nonfarm payrolls increased by 390,000 jobs
in May. The numbers for April were revised higher to show
payrolls rising by 436,000 jobs instead of 428,000 as previously
Economists polled by Reuters had forecast payrolls
increasing by 325,000 jobs last month. Estimates ranged from as
low as 250,000 jobs added to as high as 477,000.
“Overall this is a solid report, the Fed decision was
already a done deal so it is not like this is really going to
matter for that,” said Shawn Cruz, head trading strategist, at
TD Ameritrade in Chicago.
“This was more about what does this tell us about underlying
demand, the economy’s ability to handle everything going on and
are we going to see leveling off in any major sector in a big
way. But we didn’t really see any of this, there was leisure and
hospitality was up, professional and business services,
transportation and warehousing, so this was a good report that
shows the general populace is going back into the labor force.”
The yield curve steepened with the spread between U.S.
two-year and 10-year yields widening to 29.8 basis points
In early morning trading, the U.S….
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