Upbeat Jobs Report Saps Demand For Safe-Haven Treasurys |
| Wall Street Journal - May 6, 2011 |
As a surprisingly strong jobs report dented fears about the economic recovery Friday, investors sold safe-haven Treasurys.
The unexpectedly upbeat data also gave many investors an excuse to book profits after six consecutive sessions of advances--and before $72 billion new debt sales in the coming week.
Lackluster economic indicators had cast doubt about the pace of the recovery, and benchmark Treasury yields, which move inversely to their prices, had dropped to near this year's trough. Most risk-related assets, especially many commodities, reacted to this sour data by tumbling in recent days.
The 244,000 jobs growth in April was higher than a gain of 221,000 in March and beat economists forecast of 185,000.
"The report was a relief. Sentiment on the economy had been overly bearish in the past couple of weeks," said Thomas Roth, executive director in the U.S. government bond trading group at Mitsubishi UFJ Securities (USA) Inc. in New York.
Read Full Article from Wall Street Journal
- Posted: 2011-05-06 11:35:34
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