July nonfarm payrolls fell by 23K, undershooting forecasts for an 88K gain and signaling softer labor demand.
U.S. Treasury yields fell across maturities after July nonfarm payrolls declined by 23K, missing economists’ expectations for an 88K increase. The report marked a sharp reversal from prior gains and suggested cooling labor market conditions.
Analysts had anticipated a modest rebound following June’s weaker data, but the drop in payrolls surprised markets. The unemployment rate and wage growth figures, due later, may provide further clarity on labor trends.
Yields on the 10-year Treasury note extended losses, reflecting expectations of potential Fed policy shifts amid softer economic data.