10-Year Treasury Yield Dips As Data Show Slowest Job Growth In Pandemic Recovery

• The U.S. 10-year Treasury yield dipped Thursday, as investors looked to employment data showing the slowest pace of job creation in the pandemic recovery so far. The yield on the benchmark 10-year Treasury note fell less than 1 basis point to 2.926%. The yield on the 30-year Treasury bond moved slightly higher to 3.094%. 
• Private sector employment rose by just 128,000 in May, payroll processing firm ADP reported Thursday. That fell well short of the 299,000 Dow Jones estimate and marked a decline from the downwardly revised 202,000 in April, initially reported as a gain of 247,000. The benchmark rate eased as traders took the ADP report to mean the economy is already slowing, suggesting the Federal Reserve could be less aggressive in tightening monetary policy. 
• Meanwhile, Fed Vice Chair Lael Brainard said it’s unlikely the central bank will be taking a break from its current rate-hiking cycle anytime soon as inflation remained at a 40-year-high. It is anticipated that a lot of work still needs to be done to get inflation down to its 2% target. 
• Rising prices around the world remain a key concern for investors, with euro zone inflation hitting 8.1% in May, according to data released on Tuesday. 
• On the data front, Wednesday, the number of April job openings declined sharply from the previous month — but the findings suggest the job market remains tight. Further, the Institute for Supply Management said its manufacturing PMI (purchasing managers’ index) came in at 56.1 for May, up from 55.4 the month before.

(Source: CNBC)