U.S. Treasuries witness sharp recovery after unemployment rate disappoints in January

The U.S. Treasuries witnessed sharp recovery Monday after the country’s unemployment arte disappointed, that more than offset the gains in non-farm payroll for the month of January.

The yield on the benchmark 10-year Treasury slumped 4-1/2 basis points to 2.44 percent, the super-long 30-year bond yield also plunged 3-1/2 basis points to 3.07 percent while the yield on short-term 2-year note fell 2-1/2 basis points to 1.18 percent.

Non-farm payrolls in the U.S. rose in January, coming in above the market expectations. Non-farm payrolls increased 227,000, as compared with the 180,000 projected by market. On the contrary, the jobless rate rose slightly by 0.1 percentage points to 4.8 percent as household employment pulled back in spite of some re-entry to the labor force.

The influx of people into the labor force increased the participation rate by 0.2 percentage points to 62.9 percent sequentially. Several wider measures of joblessness also rose on the increased labor force participation. The employment-ratio was also up by 0.2 percentage points, matching the post-recession high.

Lastly, President Donald Trump is also scheduled to unleash his budget proposals later in the day, which is widely expected to reveal the details which markets need to further propel Trump trades.

Meanwhile, the S&P 500 Futures fell 0.25 points or 0.01 percent to trade at 2,290.75 by 12:00GMT, and at 12:00GMT, the FxWirePro's Hourly Dollar Strength Index remained neutral at 7.89 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex