Bond Yields Hit Highest Level Since 2002
The March Employment Report
beat expectations, causing a selloff in bonds and
stocks. The Department of Labor reported Non-Farm Payrolls rose by 211,000 in
March and downwardly revised February to 225,000 from 243,000
(report).
The Unemployment Rate fell to 4.7% from 4.8% last month.
Stock index futures rose immediately after the Non-Farm Payrolls data was
released but reversed course when Treasuries turned lower. Selling in the
Treasury market continued throughout the day with the 10yr T-note closing at a
new contract low. The move lower in price, higher in yield, reflected traders
views that the Fed will have to raise interest rates at least twice, maybe more.
The yield on the 10yr ended the week at 4.963%, the highest its been since 2002.
Gold Falls From 25-Year High
The US Dollar posted strong gains
versus the Euro, Yen, GBP and Swiss Franc, boosted by the Non-Farm Payrolls
number. The Dollar Index rose 0.77% with the prospect of higher interest rates.
Gold traded above $603 an ounce before reversing from a new 25-year high to
close at $592.70.
Crude Oil prices declined on Friday but rose for the week, closing at $67.45.
Unleaded Gas, Heating Oil and Natural Gas also declined today. The first two
rose this week but Natural Gas continued to languish near multi-month lows set
recently.
In the softs, Sugar was the only notable mover, recording its biggest decline in
more than a year.
Economic News
Non-Farm Payrolls up 211,000 in March (report)
Unemployment Rate at 4.7% in March
Feb. Wholesale Inventories rise 0.8%; Sales unchanged
Feb. Consumer Credit rose by $3.3 Bln.
For more news and analysis go to our
Economic
News section.
Ashton Dorkins
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