English
How have the dollar and bond yields affected by the US employment data?
The performance of the American labor market improved over the past month of July, and readings were better than market expectations, as the economy added about 1763 thousand jobs, exceeding market expectations that indicated job registration by 1530 thousand jobs, and unemployment fell to 10.2%, coinciding with a rise in Wages are around 0.2% on a monthly basis.
This positivity pushed the US dollar to rise strongly immediately after the release of the detailed report, and the DXY dollar index rose by 0.81% above the level of 93.51, recovering from its sharp decline during the previous sessions that pushed the US currency near 92.52 levels.
As for the US bond yields, it had another opinion, and despite the rise in the dollar index, the demand for government bonds decreased, which led to a drop in US 10-year bond yields by 8 points on a daily basis to about 0.56%. 30-year yields decreased by 14 points, to 1.24%.
The main reason for the decline in US bond yields can be attributed to market expectations that the US labor market will continue to deteriorate in the coming months, due to the possibility that the US Congress will fail to reach an agreement on the fiscal stimulus package.
