Article Highlights

  • Employers add 209,000 jobs in July
  • Wage growth meets expectations
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U.S. Treasury yields rose on Friday after data showed that U.S. employers hired more workers than expected in July, while wage growth also met economists’ expectations.

The Labor Department said nonfarm payrolls increased by 209,000 jobs last month amid broad gains. June’s employment gain was revised up to 231,000 from the previously reported 222,000.

Average hourly earnings increased 9 cents, or 0.3 percent, in July after rising 0.2 percent in June. That was the biggest increase in five months.

Wages rose 2.5 percent in the 12 months to July, matching June’s gain.

“It was strong across the board,” said Justin Lederer, an interest rate strategist at Cantor Fitzgerald in New York. “It puts (the Fed) still on track to start the program to wind down the book in September.”

Many analysts and investors expect the U.S. Federal Reserve to announce plans to reduce the size of its $4.5 trillion balance sheet at its September meeting.

Benchmark 10-year notes were last down 7/32 in price to yield 2.25 percent, up from 2.23 percent late on Thursday.

The yield curve between five-year notes and 30-year bonds briefly flattened below 100 basis points, the lowest level since July 11, before steepening back to 101 basis points.