Changes in government bond interest rates were minor on Wednesday, as fresh labor market data gave a mixed message about the US economy after yesterday’s hotter-than-expected ISM index.
According to the ADP publication describing the development of jobs in the private sector, 122,000 net new jobs were created in the United States in December, while the consensus of economist forecasts collected by the news agency Bloomberg expected 140,000 jobs. In November, 146,000 jobs were created.
According to Bloomberg, the number of new jobs is the lowest since August.
On the other hand, the number of fresh unemployment compensation applications was lower than expected, which indicates that the economy is running in the red despite everything.
According to the statistics, 201,000 new compensation applications were received in the week that ended on Saturday, while the consensus of economist forecasts collected by the news agency Bloomberg expected 215,000 applications. In the week before this, 211,000 applications were received.
The US market closed in a clear decline yesterday, when the ISM index for service sectors was hotter than expected in December. Investors expect the central bank, the Fed, to delay its rate cut intentions.
The market was now expecting that the central bank Fed would have made only one 25 basis point cut to the key interest rate after its meeting in July. A second surgery is given a 19 percent probability. Just a month ago, the market was expecting two cuts and the third was given a 90 percent probability.
The interest rate on the two-year US government bond had decreased by 1.0 percentage points to 4.281 percent. The ten-year interest was at 4.712 percent after the increase of 2.5 interest points. In Germany, the interest rate on the two-year government bond had risen by 1.3 percentage points to 2.199 percent. The ten-year interest rate was close to its closing level yesterday at 2.546 percent.
At 15:42, one euro was worth 1.03 dollars, 163.0 yen, 0.83 pounds and 11.5 Swedish kronor. The dollar was 158.4 yen and the pound was 1.23 dollars. The pound had weakened against the dollar by 1.1 percent and against the euro by 0.7 percent.
Wall Street futures looked in their direction after the releases. S&P 500, Nasdaq and Dow Jones futures were quoted close to yesterday’s closing level.
Source: www.arvopaperi.fi
