Applications for state unemployment benefits rose to a seasonally adjusted 243,000, slightly above expectations.
The return of the US Treasury bonds The short-term yield rose on Thursday, while a closely watched part of the yield curve steepened, following the presentation of the labor report, added to speculation that the Federal Reserve (Fed) begin cutting interest rates in September.
Initial claims for state unemployment benefits rose 20,000 to a seasonally adjusted 243,000 in the week ended July 13, the federal government said. work DepartmentSome economists polled by Reuters had previously forecast as many as 230,000 applications.
“It is a little weaker than expected and we can see that the curve is leaning a little,” he told the media. Dan Mulhollandof Crews & Associates in New York. Yields on rate-sensitive two-year notes pared gains of 4.2 basis points to 4.471 percent, and benchmark 10-year notes edged up 5.6 basis points to 4.202 percent.
The yield curve between 2- and 10-year debt steepened to -26.9 basis points. Yields fell throughout this month as weaker employment data and easing inflation increase the likelihood of an imminent rate cut by the Fed.
“The main driver is the weakening of economic data”
“The main driver is the weakening economic data,” Mulholland said, adding: “Anything to do with inflation and employment is going to be super important.”
Fed officials such as the head of the entity in NY, John Williamsreferred last Wednesday to progress in bringing inflation closer to its 2% annual target, but also said that they want to see more improvements before cutting rates. Therefore, operators are awaiting economic publications in search of new clues about the US central bank’s policy.
Source: Ambito
