A few days ago, the unemployment rate dropped to 3.5% in the United States, reaching its lowest level since 1969, with the creation of more than half a million jobs. A piece of news that brought some relief to the economy at a time when the ghosts of recession are still on the surface. The United States Secretary of the Treasury, Janet Yellen, said Monday that he saw a way to avoid a recession in the country, with a significant reduction in inflation and a solid economy given the strength of the labor market. “You don’t have one recession when there are 500,000 jobs and the lowest unemployment rate in over 50 years,” Yellen told ABC’s “Good Morning America.”
However, investors interpret the data as an open door for the Fed to continue its fight against inflation by raising interest rates.
Falls on Wall Street hurt Argentine bonds that operate with falls of up to 3.2% in the 2035 and 2029 Globals. Similarly, Argentine papers listed on Wall Street lose up to 3% thanks to Pampa Energía , Banco Superville (-2.5%) and Tenaris (-2.3%).
The yield on 10-year US Treasury bonds hit a four-week high on Monday, after surprising jobs data raised expectations that the Federal Reserve may have to keep raising interest rates for some time to come.
The yield on 10-year notes rose to 3.640%, its highest since January 6, and that on two-year paper rose to 4.435%, also its highest level since January 6.
The 10-year bond yield has retreated from a 15-year high of 4.338% hit on October 21, on expectations that Fed tightening will trigger a recession this year.
Traders increased bets on rate cuts in the second half of this year after Fed Chairman Jerome Powell seemed unconcerned by easing financial conditions, citing progress in lowering inflation after the meeting. of the entity on Wednesday, when it raised rates another 25 basis points.
The Treasury Department will sell $96 billion in coupons this week, including $40 billion in three-year bonds on Tuesday, $35 billion in 10-year bonds on Wednesday and $21 billion in 30-year bonds on Thursday.
Source: Ambito
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