Authorized and Regulated Entities: SARACEN MARKETS (PTY) LTD

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U.S Treasuries React to NFP Anticipation

4 weeks ago

In anticipation of the upcoming US nonfarm payrolls data, expected to reveal a slowdown in new job additions, Treasury movements have garnered attention. Preliminary data released on Thursday indicating an uptick in jobless claims further suggests a softening in the labor market.

Global stocks are poised for a second consecutive week of gains, fueled by ongoing speculation regarding potential interest rate cuts by the Federal Reserve in the coming months. Despite positive signals from the US ISMs in the manufacturing sector, there are emerging green shoots in economic activity, and post-FOMC positioning appears to be stabilizing. However, the strength of the Asian rally on Friday has surprised some observers.

The rally in Treasuries and the renewed demand for gold, driving the precious metal’s price higher for a fourth consecutive session on Thursday, indicate lingering concerns about US regional banks. An index tracking US regional financials is on track for its worst week since May of the previous year, reminiscent of the fallout from the banking crisis.