Treasury Yields Jumps Amid Mixed Economic Data
U.S. government bond yields rallied amid a string of data that did not help clarify U.S. economic prospects after a disappointing jobs report helped trim growth expectations.
The 10-year Treasury note yield advanced 2.2 basis points to 2.182 percent. Despite its rally, the benchmark yield's closing was still its lowest close this year. Yield on the two-year note rose 1.8 basis point to 1.308 percent, while the yield on the 30-year bond or the long bond advanced 3.1 basis point to 2.840 percent.
The movement in yields came after the ISM services index for May slid to 56.9 percent against the 57.5 percent seen in the previous month. However, April's reading marked a 12-year high and the index continued to be above the adjusted annual average of 55.9 percent.
Another report showed that U.S. productivity growth during the first quarter of the year was revised upward from 0.6 percent, indicating that economic data in Q1 was not as soft as initially reported.
In the last few weeks, muted economic data, underlined by a dismal May nonfarm payrolls report, has barely discouraged investors from betting a June rate hike. Traders are now wagering in a 95.8 percent odds of a rate increase during the Fed's next policy meeting, based on the Chicago Mercantile Exchange's FedWatch tool.
News are provided byInstaForex.