{"id":1965877,"date":"2023-07-06T17:00:01","date_gmt":"2023-07-06T21:00:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/2-year-treasury-yield-hits-16-year-high-on-hot-jobs-data\/"},"modified":"2023-07-06T17:02:00","modified_gmt":"2023-07-06T21:02:00","slug":"2-year-treasury-yield-hits-16-year-high-on-hot-jobs-data","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/2-year-treasury-yield-hits-16-year-high-on-hot-jobs-data\/","title":{"rendered":"2-year Treasury yield at 16-year high due to strong job data."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/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%2F2-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=1965877&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<h2>Hot Jobs Data Fuels Expectations of Tighter Monetary Policy<\/h2>\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 that the Federal Reserve will further tighten monetary policy following the release of hot jobs data on July 6.<\/p>\n<p>In June, private U.S. businesses created 497,000 jobs, the biggest increase since February 2022 and more 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>\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 Nela Richardson, the chief economist at ADP, said 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, 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>It\u2019s the third time that job openings have 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>ADP\u2019s count comes a day ahead of the more <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/2-year-treasury-yield-hits-16-year-high-on-hot-jobs-data\/\" title=\"2-year Treasury yield at 16-year high due to strong job data.\">closely watched nonfarm payrolls report<\/a> from the Department of Labor. 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, to top 5.08 percent, a level not seen since June 2007. Meanwhile, 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 of the New York Stock Exchange 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 increases 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 tight labor market is one of the contributing factors to the institution\u2019s thinking that more restriction is warranted.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The 2-year Treasury yield hit a peak not seen since the global financial crisis, as investors expect the Federal Reserve to tighten monetary policy after strong job data on July 6. Private U.S. businesses added 497,000 jobs in June, the largest rise since February 2022 and surpassing expectations.<\/p>\n","protected":false},"author":278,"featured_media":1965878,"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-1965877","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\/1965877","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=1965877"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1965877\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1965878"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1965877"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1965877"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1965877"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}