Treasuries End Higher

Treasuries gained on disappointing jobs data and fears of prolonged economic weakness

U.S. Treasuries soared in price on the second straight month of disappointing jobs data and increasing fears of prolonged weakness. The yield on the benchmark 10-year note plunged to 4.22%. Traders are now positioning for a neutral rate environment. The weak jobs report is expected to shift the Fed's attitude on interest rates.

July Nonfarm Payrolls rose a much less-than-expected 32,000 and the June figure was revised down to 78,000 from 112,000. The consensus was about 240,000, and Goldman Sachs forecast 300,000. Manufacturing payrolls rose 10,000, and services-producing payrolls rose 14,000. The unemployment rate remained unchanged at 5.6%.

The data suggests the economy is not recovering from the June slump. Although oil futures off bit, prices are still extremely high and will put a cloud over the global economy if they persist at high levels.

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