NEW YORK: Benchmark 10-year US Treasury yields posted their biggest daily jump in two months on Friday after data showed that US job growth accelerated far more than expected in May, leading traders to pare back expectations that the Federal Reserve could begin cutting interest rates as soon as September.
Non-farm payrolls increased by 272,000 jobs last month, above the gain of 185,000 expected by economists in a Reuters poll. Wage inflation also climbed, with average hourly earnings rising 0.4% after a 0.2% increase in April.
The unemployment rate, meanwhile, ticked up to 4.0% from 3.9% in April.
“There’s no urgency for the Fed to cut if the labor market is firm,” said Padhraic Garvey, regional head of research for the Americas at ING. “This is the most important employment print that we get. We just had it, it’s bang up to date, and it’s pretty strong.”
Bonds had rallied heading into the data on Friday as traders…
