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16 Nov

US Treasury yields down due to jobless numbers


Posted by: Chris Cavaghan

Courtesy of Tania Hatcher at RMG Mortgages

Thursday initial jobless claims higher than consensus.  Causing US Treasury yields to drop early this morning and likely bond yields in Canada will follow.  Export/import prices in US also negative and disinflationary.

US 10 year treasury down 8.2 bps this morning

The number of Americans filing for unemployment benefits rose by 13,000 to 231,000 on the week ending November 11th, the highest in nearly three months, and well above market expectations of 220,000. In the meantime, continuing claims rose by 18,000 to 1,865,000 in the previous week, the highest in nearly two years and sharply above market forecasts of 1,847,000, suggesting that jobseekers are having a more difficult time in finding suitable employment. The data pointed to a marked softening in the US labor market, aligning with the Fed’s recent warnings of a slowing economy, and underscoring that business conditions are giving in to restrictive interest rates following a period of resilience.