US yields fall from record highs after mixed employment report

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Short-term U.S. Treasury yields fell from multi-year highs on Friday, after a closely watched jobs report showed joblessness rising and growth slowing. of employment in August, as expected by many on Wall Street.

* Nonfarm payrolls increased by 315,000 jobs last month, up from 526,000 in July, according to the Labor Department. The unemployment rate rose to 3.7% from the pre-pandemic low of 3.5% in July.

* Economists polled by Reuters had forecast a payroll increase of 300,000 people. Estimates ranged from 75,000 to 450,000.

* The jobs data came a week after Federal Reserve Chairman Jerome Powell said the US economy could face a painful period of slow economic growth and rising unemployment as the central bank continues an aggressive pace of interest rate hikes to curb inflation, which is at a 40-year high.

* The two-year US Treasury yield, which typically moves in step with interest rate expectations, fell 11.8 basis points to 3.404%, after hitting a 15-year high the day before. .

* The 10-year Treasury yield fell 6.6 basis points to 3.199%, a day after hitting a two-month intraday high, while the 30-year Treasury yield fell 2.7 points. basic, up to 3.347%.

“The basic message is that the labor market may be starting to cool down and the Federal Reserve may not have to act as aggressively,” said David Page, head of macroeconomic research at Axa (EPA: AXAF ) Investment Managers.

The closely watched portion of the US Treasury yield curve that measures the difference between 2-year and 10-year Treasury yields, seen as a gauge of economic expectations, was at -20.5. basics.

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