3 Apr 2015
Treasury yields slide on a surprisingly weak payroll data
FXStreet (Mumbai) - The yields on the short duration and long duration Treasuries in the US tanked after the March payrolls report disappointed market expectations.
The non-farm payrolls data in the US showed the economy added only 126K jobs in March, which is significantly lower than the consensus estimate of 245K. Moreover, the previous month’s figure was also revised lower to 264K from the initial estimate of 295K.
Yields tank, dollar weakens
The 10-year yield fell to 1.823; down 8.1 basis points for the day; while the 30-year yield 6.3 basis points to 2.461%. Meanwhile, the 2-year yield, which mimics the short-term interest rate expectations, fell 6 basis points to 0.484%. The sharp fall in the yields, pushed the USD index lower by 1.05% to 96.75 levels.
The weakness in the yields at the short-end of the market curve indicates the bond markets could be priced-in a delay in the interest rate hike after the weaker-than-expected US data.
The non-farm payrolls data in the US showed the economy added only 126K jobs in March, which is significantly lower than the consensus estimate of 245K. Moreover, the previous month’s figure was also revised lower to 264K from the initial estimate of 295K.
Yields tank, dollar weakens
The 10-year yield fell to 1.823; down 8.1 basis points for the day; while the 30-year yield 6.3 basis points to 2.461%. Meanwhile, the 2-year yield, which mimics the short-term interest rate expectations, fell 6 basis points to 0.484%. The sharp fall in the yields, pushed the USD index lower by 1.05% to 96.75 levels.
The weakness in the yields at the short-end of the market curve indicates the bond markets could be priced-in a delay in the interest rate hike after the weaker-than-expected US data.