US employers unexpectedly cut jobs in July, indicating that the labor market is facing challenges, which may affect the Federal Reserve's intention to raise interest rates, and US Treasury bonds will rise accordingly. The two-year US Treasury yield, which is more sensitive to short-term adjustments to the Federal Reserve's monetary policy, fell 8 basis points to 4.16% on Friday, as the market cut bets on interest rate hikes in the coming months. The 10-year US Treasury yield fell 6 basis points to 4.62%. According to data released by the US Bureau of Labor Statistics on Friday, the number of non-farm payrolls fell by 23,000 in July, and the data for the previous two months was also drastically revised. The unemployment rate fell to 4.1%, while the labor participation rate continued to decline. The data suggests the labor market may be facing challenges after showing unexpectedly strong performance earlier this year. “The overall numbers in the employment report are negative, which is completely shocking,” said Tom di Galoma of Mischler Financial Group. “I'm guessing the Federal Reserve will not tighten policy in September.”

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.