8 Dec 2014
US fixed income market sold off on the strong US data – Danske
FXStreet (Barcelona) - The Danske Bank Research Team notes that the US fixed income market sold off on the strong US NFP data as yields rose more than 10.3bp in 2 year government bonds, to the highest level since 2011.
Key Quotes
“Friday’s release of the US labour market report surprised positively as the US economy added 321,000 jobs in November. The revisions to previous months were also revised higher with a total of 44,000, which leaves monthly job growth at an average of 258,000 over the past six months – the strongest six-month trend in the current recovery. The continued improvement in the labour market should keep the Fed on track to deliver the first rate hike in June 2015.”
“The US fixed income market sold off on the strong US data – primarily in the short maturities – and 10Y2Y US yield curve flattened with yields on two-year government bonds rising more than 10.3bp, to the highest level since 2011, while yields on 10-year US treasuries increased 7bp.”
Key Quotes
“Friday’s release of the US labour market report surprised positively as the US economy added 321,000 jobs in November. The revisions to previous months were also revised higher with a total of 44,000, which leaves monthly job growth at an average of 258,000 over the past six months – the strongest six-month trend in the current recovery. The continued improvement in the labour market should keep the Fed on track to deliver the first rate hike in June 2015.”
“The US fixed income market sold off on the strong US data – primarily in the short maturities – and 10Y2Y US yield curve flattened with yields on two-year government bonds rising more than 10.3bp, to the highest level since 2011, while yields on 10-year US treasuries increased 7bp.”