Odaily Planet Daily reports: U.S. employers unexpectedly cut jobs in July, indicating challenges in the labor market and potentially dampening the Federal Reserve’s willingness to raise rates, leading to a rise in U.S. Treasury prices. The yield on the two-year U.S. Treasury, which is more sensitive to short-term Fed policy adjustments, fell 8 basis points to 4.16% on Friday as markets reduced bets on further rate hikes in the coming months. The 10-year U.S. Treasury yield declined 6 basis points to 4.62%.
Data released by the U.S. Bureau of Labor Statistics on Friday showed that non-farm payroll employment decreased by 23,000 in July, with data for the previous two months also significantly revised downward. The unemployment rate fell to 4.1%, while the labor force participation rate continued to decline. The data suggests that the labor market may be facing challenges after showing unexpectedly strong performance earlier this year. “The overall numbers in the jobs report were negative—completely shocking,” said Tom di Galoma of Mischler Financial Group. “I suspect the Fed won’t tighten policy in September.” (Jin10)