Fleursdumal
फूल की बुराई
Treasuries Fall as December Job Growth Rises More Than Forecast
By Annie Pinkert
Jan. 5 (Bloomberg) -- U.S. Treasuries fell after a government report showed the economy added more jobs in December than economists forecast.
Yields on the benchmark 10-year note rose as evidence of strength in the labor market may reduce chances the Federal Reserve will cut interest rates this quarter.
``It's going to set in place some downward momentum in bonds,'' said Michael Franzese, head of Treasury trading for Salt Lake City-based Zions First National Bank before the report. ``It should get some volatility back into the market; it's going to be a good trading day.''
The 10-year note's yield rose 7 basis points, or 0.07 percentage point, to 4.68 percent at 8:33 a.m. in New York, according to bond broker Cantor Fitzgerald LP. The price of the 4 5/8 percent note due November 2016 fell 18/32, or $5.63 per $1,000 face amount, to 99 19/32. Bond yield moves inversely to price.
Employers in the U.S. added a greater-than-expected 167,000 workers to payrolls in December and incomes grew by the most in eight months, adding to evidence the economy is weathering a slump in housing and manufacturing.
The gain in employment followed a 154,000 rise in November that was larger than previously estimated, the Labor Department reported today. The jobless rate held at 4.5 percent.
Economists earlier this week forecast 115,000 new jobs in December, according to a Bloomberg survey, but reduced their predictions after ADP Employer Services on Jan. 3 said U.S. companies shed 40,000 positions last month, the first loss of jobs since April 2003.
Traders and investors expected U.S. employers added 71,400 non-farm workers in December, according to an auction of economic derivatives by the Chicago Mercantile Exchange.
The Fed raised its overnight lending rate between banks a quarter-percentage point at each of its meetings from June 2004 to June 2006. Policy makers left the rate unchanged at 5.25 percent at four meetings since then, saying the increases were still working their way through the economy.
Fed policy makers next meet Jan. 31 and are expected to hold the benchmark lending rate steady at 5.25 percent, according to all 68 economists surveyed by Bloomberg.
By Annie Pinkert
Jan. 5 (Bloomberg) -- U.S. Treasuries fell after a government report showed the economy added more jobs in December than economists forecast.
Yields on the benchmark 10-year note rose as evidence of strength in the labor market may reduce chances the Federal Reserve will cut interest rates this quarter.
``It's going to set in place some downward momentum in bonds,'' said Michael Franzese, head of Treasury trading for Salt Lake City-based Zions First National Bank before the report. ``It should get some volatility back into the market; it's going to be a good trading day.''
The 10-year note's yield rose 7 basis points, or 0.07 percentage point, to 4.68 percent at 8:33 a.m. in New York, according to bond broker Cantor Fitzgerald LP. The price of the 4 5/8 percent note due November 2016 fell 18/32, or $5.63 per $1,000 face amount, to 99 19/32. Bond yield moves inversely to price.
Employers in the U.S. added a greater-than-expected 167,000 workers to payrolls in December and incomes grew by the most in eight months, adding to evidence the economy is weathering a slump in housing and manufacturing.
The gain in employment followed a 154,000 rise in November that was larger than previously estimated, the Labor Department reported today. The jobless rate held at 4.5 percent.
Economists earlier this week forecast 115,000 new jobs in December, according to a Bloomberg survey, but reduced their predictions after ADP Employer Services on Jan. 3 said U.S. companies shed 40,000 positions last month, the first loss of jobs since April 2003.
Traders and investors expected U.S. employers added 71,400 non-farm workers in December, according to an auction of economic derivatives by the Chicago Mercantile Exchange.
The Fed raised its overnight lending rate between banks a quarter-percentage point at each of its meetings from June 2004 to June 2006. Policy makers left the rate unchanged at 5.25 percent at four meetings since then, saying the increases were still working their way through the economy.
Fed policy makers next meet Jan. 31 and are expected to hold the benchmark lending rate steady at 5.25 percent, according to all 68 economists surveyed by Bloomberg.
