US Treasuries plunge on better than expected non-farm payrolls

The US Treasuries plunged Friday after data showed that the country’s non-farm payroll increased higher than expected in July, reinvigorating expectations of Fed tightening this year.

The yield on the benchmark 10-year Treasury note rose 4 basis points  to 1.497 percent, the yield on 5-year note jumped 5 basis points to 1.080 percent and the yield on short-term 2-year note also bounced  5 basis points to 0.698 percent by 12:40 GMT.

The July Labor Department employment situation report revealed a considerable +255k increase in non-farm payrolls, which comes well above market expectations for a +180k increase, as compared to the revised +292k result that occurred in June (previous was  +287k). This comes alongside no change in the unemployment rate at 4.9 percent, above expectations for a 4.8 percent result.

Lastly, markets will now focus on the next week’s economic data or events, highlighted by 10-year bond auction, 30-year bond auction, PPI and retail sales.

Meanwhile, the S&P 500 Futures traded 7 points higher at 2,166 by 12:40 GMT.