Treasuries Advance Ahead of US Jobs Data Key to Fed Outlook
- Report is widely expected to show a cooling labor market
- Money markets see first Fed rate cut as early as September
A worker at a hardware store in San Francisco.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Treasuries inched higher across the curve as traders looked ahead to a monthly US employment report that’s widely expected to show a gradual cooling in the labor market, potentially bolstering the case for monetary policy easing.
Two-year yields, among the most sensitive to changes in the outlook for interest rates, dropped three basis points to 4.69% as trading resumed following the July 4 holiday. Payrolls probably rose by 190,000 last month, according to the median estimate in a Bloomberg survey, down from 272,000 in May.