{"id":1965551,"date":"2023-07-06T12:50:02","date_gmt":"2023-07-06T16:50:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/two-year-treasury-yield-hits-16-year-high-on-hot-jobs-data\/"},"modified":"2023-07-06T12:52:17","modified_gmt":"2023-07-06T16:52:17","slug":"two-year-treasury-yield-hits-16-year-high-on-hot-jobs-data","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/two-year-treasury-yield-hits-16-year-high-on-hot-jobs-data\/","title":{"rendered":"2-year Treasury yield reaches 16-year peak due to strong job market data."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftwo-year-treasury-yield-hits-16-year-high-on-hot-jobs-data%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1965551&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"post_content\">\n<div class=\"aplayer_app\" data-source=\"https:\/\/vs1.youmaker.com\/assets\/2023\/0706\/ea40d3c9-dbfe-4d71-92b0-c6fc95e5c91f\/audio.mp3?length=4464909&#038;duration=372\"><\/div>\n<\/p>\n<p>The 2-year Treasury yield reached its highest level since the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/milton-friedmans-revenge\/\" title=\"Milton Friedman\u2019s Revenge\">global financial crisis<\/a> as investors anticipate the Federal Reserve will further tighten monetary policy following hot jobs data.<\/p>\n<p>In June, private U.S. businesses created 497,000 jobs, the biggest increase since February 2022 and higher than the consensus estimate of 228,000, according to the ADP Research Institute\u2019s National Employment Report (<a href=\"https:\/\/adp-ri-nrip-static.adp.com\/artifacts\/us_ner\/20230706\/ADP_NATIONAL_EMPLOYMENT_REPORT_Press_Release_2023_06%20FINAL.pdf\">pdf<\/a>).<\/p>\n<p>The services sector accounted for most of the job creation, led by leisure and hospitality (232,000), trade and utilities (90,000), and education and health care (74,000). The goods-producing industry added 124,000 new positions, driven primarily by construction (97,000) and mining (69,000).<\/p>\n<p>Despite the current administration announcing more significant investments in the sector, manufacturing continued the latest trend of job cuts, laying off 42,000 people. Various manufacturing measurements, such as the <a href=\"https:\/\/www.spglobal.com\/marketintelligence\/en\/mi\/research-analysis\/us-manufacturing-downturn-accompanied-by-slumping-price-pressures-Jul23.html\">S&#038;P Global Manufacturing Purchasing Managers\u2019 Index (PMI)<\/a>, suggest the industry is in a recession.<\/p>\n<p>Information and financial activities also saw an employment decline of 30,000 and 16,000, respectively.<\/p>\n<p><strong>\u201cConsumer-facing service industries had a strong June, aligning to push job creation higher than expected. But wage growth continues to ebb in these same industries, and hiring likely is cresting after a late-cycle surge,\u201d<\/strong> said Nela Richardson, the chief economist at ADP, in a statement.<\/p>\n<p>Wage growth slowed in June, slowing to 6.4 percent year-over-year for job stayers, down from 6.6 percent in May. For job changers, pay gains eased for the 12th consecutive month to 11.2 percent.<\/p>\n<p>Small- and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/two-year-treasury-yield-hits-16-year-high-on-hot-jobs-data\/\" title=\"2-year Treasury yield reaches 16-year peak due to strong job market data.\">medium-sized businesses produced<\/a> all of the new jobs last month, with 299,000 and 183,000, respectively. Large companies slashed payroll by 8,000.<\/p>\n<p>The latest ADP figures come after the Bureau of Labor Statistics\u2019 (BLS) <a href=\"https:\/\/www.bls.gov\/news.release\/jolts.nr0.htm\">Job Openings and Labor Turnover Summary (JOLTS) data<\/a> found that the number of job vacancies tumbled by 496,000 to 9.824 million in May, down from 10.103 million in April. The sharpest drops were situated in health care and social assistance (negative 285,000) and finance and insurance (negative 139,000).<\/p>\n<p>This is the third time job openings slipped below the 10 million mark in 2023.<\/p>\n<p>Job quits unexpectedly returned above 4 million in May, the highest level since December 2022. The quits rate\u2014a measurement of voluntary job leaves among total employment\u2014edged up to 2.6 percent, up from 2.4 percent in the previous month.<\/p>\n<p>All eyes will be on the June non-farm payrolls report. Economists forecast that the U.S. economy created 225,000 new jobs last month, while the unemployment rate dipped to 3.6 percent. Annualized average hourly earnings are also projected to slide to 4.2 percent.<\/p>\n<h2>Treasury Yields and the Fed<\/h2>\n<p>The strong labor market has many investors thinking the Federal Reserve will raise interest rates again as early as this month.<\/p>\n<p>The 2-month Treasury yield jumped by about 13 basis points, topping 5.08 percent. This yield has not been seen since June 2007.<\/p>\n<p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-street-ends-down-as-investors-eye-slowing-economy\/\" title=\"Wall Street ends down as investors eye slowing economy\">benchmark 10-year yield rose<\/a> more than 12 basis points to nearly 4.07 percent.<\/p>\n<figure id=\"attachment_5240386\" style=\"width: 600px\" class=\"wp-caption alignnone\">\n    <a href=\"https:\/\/img.theepochtimes.com\/assets\/uploads\/2023\/05\/03\/id5240386-NYSE-traders-1-1200x800.jpg\"><figcaption class=\"wp-caption-text\"><noscript><\/noscript><\/figcaption><\/a><br \/>\n    Traders work on the floor at the New York Stock Exchange in New York, on May 3, 2023. (Seth Wenig\/AP Photo)<br \/>\n  <\/figure>\n<p>After the June Federal Open Market Committee (FOMC) policy meeting, the updated <a href=\"https:\/\/www.federalreserve.gov\/monetarypolicy\/fomcprojtabl20230614.htm#:~:text=Summary%20of%20Economic%20Projections%20In%20conjunction%20with%20the,2023%20to%202025%20and%20over%20the%20longer%20run.\">Survey of Economic Projections (SEP)<\/a> signaled that two more rate hikes were coming before the year\u2019s end as the median fed funds rate was expected to touch 5.6 percent.<\/p>\n<p>Fed Chair Jerome Powell <a href=\"https:\/\/www.theepochtimes.com\/feds-powell-predicts-further-restriction-including-rate-hikes-at-consecutive-meetings_5361234.html\">indicated<\/a> at a European Central Bank (ECB) forum in Portugal last week that a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-trips-on-the-border\/\" title=\"Biden Trips on the Border\">tight labor market<\/a> was one of the contributing factors to the institution\u2019s thinking that more restriction is warranted. He also refrained from taking <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The 2-year Treasury yield surged to its highest level since the global financial crisis due to investor expectations of the Federal Reserve tightening monetary policy. In June, private U.S. businesses added 497,000 jobs, the largest increase since February 2022, surpassing the consensus estimate of 228,000, as per ADP Research.<\/p>\n","protected":false},"author":278,"featured_media":1965552,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-1965551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1965551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1965551"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1965551\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1965552"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1965551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1965551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1965551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}