Euro zone bond yields slip after US labour market slows

economictimes.indiatimes.com:

Euro zone bond yields fell on Friday after data suggested the U.S. jobs market slowed in June. The U.S.

economy added 209,000 jobs last month, down from an increase of 306,000 in May, figures showed on Friday. Economists had expected an increase of 225,000 jobs. But the unemployment rate fell and wage growth held steady, suggesting the U.S.

economy remains resilient in the face of interest rate hikes.Germany's two-year yield was last down 6 basis points (bps) at 3.301%, having traded at 3.339% before the data was released. Yields move inversely to prices. The falls were less pronounced in longer-dated bond yields.

Germany's 10-year yield, the benchmark for the euro area, initially fell sharply but was last down only marginally at 2.625%, compared with 2.642% before the data. «There's a little bit of something for everybody in today's data, and I think the market's looking at the earnings more than the headline number,» Nick Chatters, investment manager at Aegon Asset Management, said. It has been a volatile week for bond markets, with yields on longer-dated bonds jumping on Thursday after economic data suggested central banks will have to keep hiking interest rates to tame inflation.

Germany's 10-year yield rose 15 bps, the most since the banking turmoil in March, on Thursday after a stronger-than-expected U.S. ADP national employment report. Meanwhile, Germany's two-year bond yield, which is highly sensitive to interest rate expectations, hit its highest level in 15 years at 3.393%.