Bonds up as weak jobs figures raise worries

NEW YORK (BestGrowthStock) – Safe-haven U.S. Treasuries’ prices edged higher on Friday after data showed the economy lost 125,000 jobs in June, highlighting fears that the recovery was losing steam.

It was the first decline in payrolls this year and the worst drop since October, though reaction in financial markets was choppy because a large portion of the decline was due to temporary workers recently involved in the government’s census.

Bonds initially lost and then gained ground as traders scrutinized the data, which also showed a fall in the unemployment rate that appeared to contradict the weakness elsewhere in the report.

Also, some speculators had been betting on an even worse result, making the actual showing not so bad by comparison and limiting the gains in Treasuries.

“It’s so confusing…Apparently it’s not horrible. I don’t think this will change the trends we are in, which is down for stocks and up for bonds,” said Jim Barrett, senior market strategist at Lind-Waldock in Chicago.

The benchmark 10-year note was last up 6/32 in price, yielding 2.93 percent versus Thursday’s close of 2.94 percent.

(Reporting by Burton Frierson and Richard Leong)

Bonds up as weak jobs figures raise worries