Weak U.S. employment data in July exacerbates recession fears: probability of interest rate cut significantly increases
Data released by the U.S. Bureau of Labor Statistics on Friday showed that the U.S. non-farm employment population increased by 114,000 in July, which was far less than the expected 175,000 and a sharp decrease from the previous value of 206,000.
The U.S. unemployment rate rose to 4.3% in July, higher than expected and the previous reading of 4.1%.
At the same time, hourly wages in July increased by 0.2% month-on-month, slightly lower than expectations and the previous value of 0.3%. They rose by 3.6% year-on-year, which was 3.7% lower than expected. The previous value was 3.9%.
Taken together, this employment report shows that the growth momentum of the U.S. job market has significantly weakened, the unemployment rate has increased and wage growth has slowed. The market is worried about recession. It is expected that the probability of the Federal Reserve cutting interest rates will increase, and the pace may be advanced.
$U.S. 10-Year Treasury Notes Yield (US10Y.BD)$
$U.S. 10-Year Treasury Notes Yield (US10Y.BD)$
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HYGWE : The Fed is behind the curve and will maybe act before September