Breaking News » Bonds jump, dollar slips on weak U.S. jobs data
Bonds jump, dollar slips on weak U.S. jobs data
NEW YORK (Reuters) - U.S. government debt prices jumped while the dollar fell on Friday as weaker-than-expected jobs growth in December cast some doubt on the U.S. economic outlook.
Analysts said the jobs setback was affected by unusually cold weather and was likely to be temporary, though it was enough to raise some questions about the next move from the Federal Reserve.
The report helped support the view the U.S. central bank, which last month announced it would begin scaling back its massive stimulus program, will take a gradual approach to reducing its bond-buying program this year.
"People are hoping this is an anomaly, and it seems like it was related to the weather, but if it is a trend, then that is a real threat to GDP and corporate earnings growth."
The 10-year gilt yield fell 12 basis points,to 2.865 percent, the biggest decline since Oct. 22
The 10-year note's yield fell to a session low of 2.8579 percent, the lowest in over three weeks, after hitting a near 2-1/2-year high of 3.041 percent last week.
U.S. nonfarm payrolls rose just 74,000 in December, the smallest increase in nearly three years and far below the 196,000 forecast by economists.
The unemployment rate fell 0.3 percentage point to 6.7 percent, but this in part reflected people leaving the labor force.
The central bank announced in December that it would trim its monthly purchases of bonds to $75 billion from $85 billion, and many economists had expected it to decide on a similar-sized cut at its next meeting on January 28-29.
The dollar fell broadly following the jobs report. Against the yen, the dollar last traded at 104.10 yen, down 0.7 percent and below the session's high of 105.12 yen.
The U.S. dollar index .DXY, which measures the greenback versus six major currencies, was down 0.5 percent.
GOLD, OIL GAIN
Gold rose 1.5 percent for the day and notched a third consecutive weekly gain after the disappointing U.S. jobs data.
Spot gold edged up to $1,245.58 an ounce. For the week, gold was up almost 1 percent, rising a third consecutive week, its longest weekly winning streak since August.
Oil futures also rose, reversing two days of losses, as traders covered short positions ahead of the weekend and as reports of production problems at a major U.K. oilfield fueled supply worries.
In New York, oil gained $1.06 to settle at $92.72. Brent crude oil futures rose 86 cents to settle at $107.25 a barrel.
ECB PARTS WAYS WITH FED, CHINA EYED
In contrast to the Fed, the European Central Bank has kept holding out the prospect of yet more stimulus.
On Thursday, ECB President Mario Draghi underlined his determination to act should deflation become a real risk or rising money rates threaten a fragile recovery.
Thanking you
Regards,
Rajesh Kumar Kathpalia ¤ SMC Global
17,Netaji Subhash Marg,Daryaganj,
New Delhi-110002 Mobile No 9891645052
Email Id: rajesh.ipo@smcindiaonline.com
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NEW YORK (Reuters) - U.S. government debt prices jumped while the dollar fell on Friday as weaker-than-expected jobs growth in December cast some doubt on the U.S. economic outlook.
Analysts said the jobs setback was affected by unusually cold weather and was likely to be temporary, though it was enough to raise some questions about the next move from the Federal Reserve.
The report helped support the view the U.S. central bank, which last month announced it would begin scaling back its massive stimulus program, will take a gradual approach to reducing its bond-buying program this year.
"People are hoping this is an anomaly, and it seems like it was related to the weather, but if it is a trend, then that is a real threat to GDP and corporate earnings growth."
The 10-year gilt yield fell 12 basis points,to 2.865 percent, the biggest decline since Oct. 22
The 10-year note's yield fell to a session low of 2.8579 percent, the lowest in over three weeks, after hitting a near 2-1/2-year high of 3.041 percent last week.
U.S. nonfarm payrolls rose just 74,000 in December, the smallest increase in nearly three years and far below the 196,000 forecast by economists.
The unemployment rate fell 0.3 percentage point to 6.7 percent, but this in part reflected people leaving the labor force.
The central bank announced in December that it would trim its monthly purchases of bonds to $75 billion from $85 billion, and many economists had expected it to decide on a similar-sized cut at its next meeting on January 28-29.
The dollar fell broadly following the jobs report. Against the yen, the dollar last traded at 104.10 yen, down 0.7 percent and below the session's high of 105.12 yen.
The U.S. dollar index .DXY, which measures the greenback versus six major currencies, was down 0.5 percent.
GOLD, OIL GAIN
Gold rose 1.5 percent for the day and notched a third consecutive weekly gain after the disappointing U.S. jobs data.
Spot gold edged up to $1,245.58 an ounce. For the week, gold was up almost 1 percent, rising a third consecutive week, its longest weekly winning streak since August.
Oil futures also rose, reversing two days of losses, as traders covered short positions ahead of the weekend and as reports of production problems at a major U.K. oilfield fueled supply worries.
In New York, oil gained $1.06 to settle at $92.72. Brent crude oil futures rose 86 cents to settle at $107.25 a barrel.
ECB PARTS WAYS WITH FED, CHINA EYED
In contrast to the Fed, the European Central Bank has kept holding out the prospect of yet more stimulus.
On Thursday, ECB President Mario Draghi underlined his determination to act should deflation become a real risk or rising money rates threaten a fragile recovery.
Thanking you
Regards,
Rajesh Kumar Kathpalia ¤ SMC Global
17,Netaji Subhash Marg,Daryaganj,
New Delhi-110002 Mobile No 9891645052
Email Id: rajesh.ipo@smcindiaonline.com
--
You received this message because you are subscribed to the Google Groups "Product Updates for AMC" group.
To unsubscribe from this group and stop receiving emails from it, send an email to Productupdatesforamc+unsubscribe@googlegroups.com.
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