Treasuries Stumble as Resilient Jobs Data Vex Fed Rate Path

  • New jobless claims unexpectedly fall to lowest since May
  • Traders price in 70 basis points more Fed easing this year
US Jobless Claims Fall Below Estimates at 219,000
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US Treasuries are mostly sliding a day after the Federal Reserve cut interest rates by half a percentage point, with investors finding evidence of labor-market strength in the latest data.

Longer-dated US government debt slipped on Thursday after weekly initial jobless claims unexpectedly fell, indicating the job market remains healthy. Two-year notes, which are closely tied to monetary policy, meanwhile ticked higher in the wake of the Fed’s larger-than-expected rate reduction.