T-Bond Futures Market News and Commentary
Sep T-notes (ZNU20) on Friday closed down -22.5 ticks. The 10-year T-note yield rose +8.1 bp at 0.904%.
Sep 10-year T-notes on Friday tumbled to a 2-1/4 month low and the 10-year T-note yield climbed to a 2-1/4 month high of 0.956%. T-note prices sold off Friday on an unexpectedly strong U.S. May payroll report.
U.S. May non-farm payrolls unexpectedly rose +2.509 million, much stronger than expectations for a decline of -7.5 million. Also, the May unemployment rate unexpectedly fell -1.4 to 13.3%, showing a stronger labor market than expectations for an increase to 19.0%.
Another negative for T-notes was Friday's announcement from the Fed that it will cut its pace of Treasury buying to $4 billion a day from $4.5 billion a day starting Monday, June 8.
Friday's U.S. wage data was bullish for T-notes after the May avg hourly earnings report of -1.0% m/m and +6.7% y/y was weaker than expectations of +1.0% m/m and +8.5% y/y.
Friday's U.S. consumer credi... Read more