(Updates with values at market close)
NEW YORK, April 7 (Reuters) – Treasury yields rose on Friday after data showed the U.S. economy continued to add jobs at a brisk pace in March amid a tight job market. , increasing the likelihood that the Federal Reserve will raise interest rates again in May.
* Nonfarm payrolls increased by 236,000 jobs last month, the Labor Department reported, while data for February was revised up to show the addition of 326,000 jobs instead of the previously reported 311,000. E economists polled by Reuters estimated an increase of 239,000 in March.
* “The data is going to keep the Fed on track for a 25 basis point hike in May,” said Kim Rupert, managing director of global fixed income at Action Economics in San Francisco. “We also expect a 25 basis point rise in June, and these numbers would fit.”
The yield on two-year Treasuries, which typically moves in step with rate expectations, rose 17.2 basis points to 3.993%, reversing a sharp decline earlier this week on fears the economy would slow so much. quickly fell into recession.
* The 10-year return was up 12.3 basis points to 3.413%.
* Data showed the unemployment rate fell to 3.5% from 3.6% the previous month, while the annual wage increase fell to 4.2% from 4.6% in February, a pace slower which is likely to please the Fed, which is tightening monetary policy to curb inflation.
* “The bright spot again is average hourly earnings. It was a little below expectations,” said Russell Price, chief economist at Ameriprise Financial in Troy, Mich., who nonetheless called the job market tight.
* “This is encouraging for the Fed as wage inflation is declining and therefore may reduce their need for further rate hikes.”
* The curve measuring the gap between two-year and 10-year rates, seen as a harbinger of recession when shorter-dated bond yields outpace longer-dated ones, remained inverted at -52.8 basis points .
* The 30-year yield rose 8.3 basis points to 3.623%.
(Reporting by Herbert Lash; Editing in Spanish by Manuel Farías)
Source: Ambito
