Lates News

In July, U.S. employers unexpectedly cut jobs, indicating that the labor market is facing challenges, which may affect the Federal Reserve's willingness to raise interest rates, leading to a rise in U.S. Treasury yields. The yield on the two-year U.S. Treasury, which is sensitive to short-term adjustments in Federal Reserve monetary policy, fell by 8 basis points to 4.16% on Friday, as the market reduced bets on interest rate hikes in the coming months. The yield on the 10-year Treasury dropped by 6 basis points to 4.62%. Data released by the U.S. Bureau of Labor Statistics on Friday showed that non-farm payrolls decreased by 23,000 in July, with significant downward revisions to data from the previous two months. The unemployment rate fell to 4.1%, while the labor participation rate continued to decline. The data suggests that after a surprisingly strong performance earlier this year, the labor market may now be facing challenges. "The overall number in the employment report is negative, and it is completely shocking," said Tom di Galoma from Mischler Financial Group. "I guess the Fed won't tighten policy in September."