rtmark
LearnBonds.com

U.S. Government Debts Yields Plunged After Big Gains in the Week

After steadily rising and hitting one week high on Thursday, U.S. government debt yields plunged sharply on Friday amid higher than expected job data. The markets stabilized slightly after initial selloff as investor’s keyed into sluggish wages and a decline in the number of people in the labor force.

Nonfarm payrolls jobs rose by 263,000 jobs in April compared to expectations of 185,000 jobs additions, driven by hiring nearly across all sectors. Wage growth remains soft – with average hourly earnings grew only 0.2% in the past two consecutive months, keeping the annual growth in wages around 3.2%.

The Unemployment rate dropped to 3.6% vs. 3.8% [in] Mar; ostensibly a good thing, however, the participation rate was the cause,” Lyngen wrote in an email. “In light of the Fed’s emphasis on inflation at this point in the cycle, we’re not surprised to see the Treasury market is slightly higher following the data release.”

The yields also received some support after a decline in Supply managements nonmanufacturing index to 55.5% in April compared to analysts expectations for 57.5%. The growth in the index represents economic expansion while the drop is considered an economic contraction.

After dropping sharply amid better jobs addition at the beginning of a session, the benchmark 10-year Treasury note stabilized at the end of trading. However, the 10-year Treasury ended the day at around 2.527%, down 2.2 basis points from the previous closing. The yield on the 30-year Treasury bond was down at 2.919%.

Yields have recently received support from Federal Reserve Chairman Jerome Powell comments related to interest rate policy and inflation. The chairman said the decline in inflation number is due to transitory factors and they are not in a hurry to make changes to their rate policy. Traders are now focusing on consumer price inflation data due next Friday to make their opinion about inflation numbers.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.