Bonds Fall on Jobs Report

U.S. 10-year Treasury bond prices fell to the
lowest levels in 2 months today, after a positive jobs report was released
today. The Labor Department said the U.S. economy added 180,000 jobs in
March, and the jobless rate fell back to October’s five-year low. Bonds
typically rise on economic weakness and fall on strength, so traders took the
jobs numbers as a big positive for the economy. Interest rate futures show
about an 8% chance of a rate cut by July.

The dollar surged off 2-year lows against the
euro today, and also rose against the yen after a positive jobs report was
released. The euro had pushed to highs against the yen and dollar
yesterday on a positive German industrial report, but today’s jobs report saw
the dollar fighting back. The yen has been under major pressure lately,
and with global equities bouncing back, the carry trade is pushing the Japanese
currency towards more weakness. The currency market favors inflation and
positive growth, which puts the euro at a major advantage over the yen and the

The NYMEX exchange was closed today, so the
common futures oil and natural gas contracts did not trade today.

Gold and copper did not trade in the U.S. today.

Grains did not trade today in the U.S.


The U.S. economy
added 180,000 jobs in March.

jobless rate fell to 4.4%, matching October’s 5-year low.

John Lee

Associate Editor