U.S. Treasurys Expected to Show Asymmetric Reaction to Payrolls Data
Dow Jones13:15
0515 GMT - The U.S. Treasury market reaction to the payroll report, due on Friday, is likely to be asymmetric, say TD Securities' strategists in a note. A modestly softer payroll print will allow the market to breathe a sigh of relief and lower the pricing for a September rate hike, they say. "However, it would likely take material weakness for investors to take a September hike fully off the table." A firmer payroll report could reinforce recent Federal Reserve hawkishness, and allow 10-year Treasurys to test past the key 4.70% yield level again, they say. The 10-year Treasury yield last trades at 4.614%, according to Tradeweb.
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