Treasuries Remain Under Pressure Following Stronger Than Expected Jobs Data

(RTTNews) - Extending the downward move seen over the two previous sessions, treasuries saw notable weakness during trading on Thursday.

Bond prices came under pressure early in the session and remained firmly negative throughout the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price climbed 5.5 basis points to 4.348 percent.

The continued weakness among treasuries came following the release of a closely watched Labor Department report showing employment in the U.S. increased by more than expected in the month of June.

The Labor Department said non-farm payroll employment shot up by 147,000 jobs in June after jumping by an upwardly revised 144,000 jobs in May.

Economists had expected employment to increase by 110,000 jobs compared to the addition of 139,000 jobs originally reported for the previous month.

The report also said the unemployment rate edged down to 4.1 percent in June from 4.2 percent in May. The unemployment rate was expected to inch up to 4.3 percent.

The stronger than expected jobs data reduced treasuries' safe haven appeal while also lowering the chances of a near-term interest rate cut by the Federal Reserve.

"If businesses keep expanding payrolls like they've done so far this year, the Fed can comfortably sit in 'wait and see' mode at the upcoming policy meeting," said Jeffrey Roach, Chief Economist for LPL Financial. "Uncertainty around tariffs and trade have apparently not spooked businesses into shedding workers."

He added, "One note of caution: the administration is still actively negotiating details with several major trading partners and the eventual business impacts are unknown."

Following the long Fourth of July weekend, the U.S. economic calendar for next week is relatively quiet, although the minutes of the latest Fed meeting may attract some attention.