On June 29, 2026, traders work at the New York Stock Exchange.
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Short-term Treasury yields fell on Thursday as investors digested a weaker-than-expected jobs report that suggested the Federal Reserve may hold off on raising interest rates.
The two-year US Treasury yield fell 5 basis points to 4.114%. Benchmark yield 10 year treasury The stock fell about 1 basis point to trade at about 4.461%.
Nonfarm payrolls rose by a seasonally adjusted 57,000 jobs in June, well below the 129,000 increase in May and below the Dow Jones consensus estimate of 115,000.
“Overall, this morning’s numbers make it difficult to chart a path for a Fed rate hike in July, even if the upside in inflation numbers has not materialized yet,” said Ian Lingen, head of U.S. rates strategy at BMO Capital Markets. “The probability of a July cut has fallen sharply, consistent with the view that the salary situation makes it difficult to envisage a summer increase.”
The data was released one day early due to the July 4th holiday. This is one of the few important reports that provides insight into the U.S. economy this week. Meanwhile, Federal Reserve Chairman Kevin Warsh told CNBC’s Sara Eisen during a panel discussion at the European Central Bank’s annual policy meeting in Sintra, Portugal that prices are “too high.”
“We all looked around and found that the prices were too high,” he said of attendees at the event.
“If there are people in the household sector, in the corporate sector, in the financial markets who think this central bank is going to be happy with an inflation target above 2%, they’re probably going to be disappointed,” he added during Wednesday’s discussion. “Bringing price stability to the United States”
