After consumer inflation sentiment darkens, the Ministry of Finance rises
The US Treasury yields show that consumer sentiment about future inflation has worsened, with January employment reports showing higher wage growth than expected and could put pressure on prices. Friday was expensive.
10-year-old Ministry of Finance Yield rose by 5 basis points to 4.489%. 2nd year Ministry of Finance After increasing 8 basis points, the yield was 4.289%. Yields and prices move in the opposite direction, with one basis point equaling 0.01%.
Consumers were dramatically concerned about short-term inflation as president Donald Trump A closely viewed survey that pushed aggressive tariffs against major US trading partners was shown on Friday.
University of Michigan Consumer Survey In February, respondents were shown to expect inflation to be 4.3% in the next year, a 1% point jump from January, and the highest level since November 2023.
“We’re looking forward to seeing you in the future,” said Bryce Doty, senior portfolio manager at SIT Investment Associates.
Meanwhile, the January non-farm salary report showed that average hourly revenues also increased 0.5% last month and 4.1% over the past year. According to Dow Jones, economists were expecting an increase of 0.3% and 3.7%, respectively.
The labor market has been added 143,000 online employment Last month, the unemployment rate fell from 4.1% to 4.0%, despite the expected 169,000 economists being lower than the expected 169,000 jobs growth over the past two months.
“Overall, despite the disappointing headline mistakes, the fundamental details were strong,” said Ian Lyngen, managing director and head of the BMO Capital Markets bond strategy team. .
Data may indicate slower job creation, but lower unemployment and strong wage growth support the view that the labor market appears to be in good condition, and unemployment is soon It doesn’t become a problem with the Federal Reserve system.
Markets in light of the Fed, which could hold interest rates for more months, to see how Trump’s fiscal, economic and trade policies (including potential tariffs) shake up. We welcome stable employment.
The latest employment report was made after the payroll company ADP On Wednesday, the private sector said it had created 183,000 jobs in January. This was higher than the revised December figure of 176,000, exceeding expectations.
Focus will soon shift from this week’s employment numbers to another important data point scheduled for next week, as well as the numbers for consumer and wholesale inflation for January.
– Additional reports by Jeffcox and Salamine of CNBC.