US 10Y TREASURY: NFP implied yields

9 ก.ย.

Friday was the major trading day on the US financial markets, after the release of jobs data for August. The US nonfarm payrolls came weaker than market was expecting, which implied market higher volatility. The nonfarm payrolls came at the level of 142K, while the market was expecting to see 160K for the month. On the positive side was a modest decrease in the unemployment rate from 4,3% to 4,2% in August. Such weak figures were an indication to markets that the Fed might need to cut interest rates at least by 50 bps in order to support the economy, which might be potentially entering into a recession. Of course, the US economy is still holding in a relatively good shape, where relatively weaker jobs figures should be taken with a reserve.

The 10Y Treasury benchmark was pushed to the downside, reaching the lowest weekly level at 3,65% at one occasion at Friday's trading session. Still, yields are ending the week at the level of 3,71%. The week ahead will be used by investors to digest the latest jobs data and reassess their positions accordingly. In this sense some adjustments in yields are possible to the upside. The level of 3,8% might be tested for one more time.