On Monday, U.S. government debt prices saw an increase after data released last week indicated a deceleration in job growth. The yield on the benchmark 10-year Treasury note dropped to 3.363%, while the yield on the 30-year Treasury bond fell to 3.584%. Concurrently, the 2-year note yield declined about 4 basis points to 3.933%. Yields and prices have an inverse relationship.
The Labor Department's nonfarm payroll data for March, released last week, revealed that the U.S. economy added 236,000 jobs during the month. Although the figure met expectations, it was lower than the 326,000 new hires in February.
Comerica Bank's Chief Economist Bill Adams commented, "March's jobs growth was the smallest monthly increase since December 2020, but was still a good increase. Hiring is slowing, with headwinds concentrated in the tech industry, real estate, finance, and retail." Adams also noted that other labor market indicators have worsened in recent months and that revisions to the jobs report are more likely to be negative.
Investors are also focusing on the inflation outlook, as consumer price index data is scheduled to be released on Wednesday. The Federal Open Market Committee will also release minutes from its latest monetary policy meeting on the same day.
Market participants are assessing the possibility of tighter credit conditions and a potential U.S. recession following the near collapse of Swiss investment banking giant Credit Suisse and the failures of several mid-tier U.S. lenders.
