NEW YORK (dpa-AFX) – US government bonds suffered further price losses on Friday. In the course of the US labor market data presented for December, traders cited higher inflation expectations as an important reason. The futures contract for ten-year Treasuries (T-Note-Future) fell by 0.20 percent to 136.60 points. In contrast, the yield on the ten-year bond rose to 1.11 percent.
The US government’s latest labor market report disappointed market expectations. The number of employees fell in December for the first time since the economic slump last April. After seven increases in a row, the recovery on the job market of the world’s largest economy has ended for the time being.
The report partly supported the prospect of additional government spending, which many investors believe is more likely given recent US policy decisions in favor of the Democrats. Hourly wages, which rose significantly more than expected, also contributed to rising inflation expectations on Friday. They are considered a burden for the bond market because high inflation erodes the interest./bgf/jkr/tih/he