(Bloomberg) — Treasuries slid and the US dollar climbed after stronger-than-expected jobs numbers dampened Wall Street’s confidence that the Federal Reserve’s next interest-rate cut would be a big one.
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Ten-year yields closed in on 3.8% after hitting a low of 3.69% in the prior session amid a flare-up of tensions in the Middle East. The dollar reached nearly a two-week high after the labor readout as traders pondered the scope of the Fed’s next move.
Data Wednesday showed US companies added more jobs than expected last month, at odds with other indicators that show a cooling labor market. Friday’s nonfarm payrolls numbers will be the next critical gut check on the health of workers and the US economy.
“Today’s ADP employment number surprised to the upside, suggesting the labor market is bending but not breaking,” said Chris Larkin at E*Trade from Morgan Stanley. “Friday’s monthly jobs report…
